Variable | Description |
Time | Year |
Y | Real GDP |
C | Consumption |
I | Investment |
EX | Exports |
IM | Imports |
G | Government Expenditures |
M1 | M1 Money Supply |
T | Total Tax Revenues |
r | Prime Rate of Interest |
Variable | Reason for Instrument |
G | Government spending does not depend on other internal variables |
NX | Net exports do not depend on other internal variables |
T | Taxes do not depend on other internal variables |
C_lagged | Lagged consumption was determined in the previous time period, and does not depend on the current period's GDP, disposable income, etc. |
r_lagged | Lagged interest rates were determined in the previous time period, and do not depend on the current period's GDP or money supply. |
Results of the Two-Stage Least Squares Regression
Regression Failed! Regression failed on stage 1: YD RunLS Output: Bad conditioning of independent data matrix RCOND=5.571178650971675E-40 |
Results of the Two-Stage Least Squares Regression
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