Home » Consider the following static model used to explore the relationship between dwelling* approvals , population and interest rates : Idwelling. = Bot…

# Consider the following static model used to explore the relationship between dwelling* approvals , population and interest rates : Idwelling. = Bot…

could u give the clear answer and explain each,thank u!

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Consider the following static model used to explore the relationship between dwelling*approvals , population and interest rates :Idwelling. = Bot Bilpopn’t + Sirate, + Ut .Now consider a finite distributed lag ( FDL ) extension of the form :”I dwelling , = Bo + Bilpopn’t + S,irate, + Szirate- – 1 + Szirate- – 2 + S,irate- – 3 +But + Ut.To estimate these models , we use Victorian monthly data ( 1996 : January to 2015 : April )where the variables of interest are :”Idwellinglog of number of new houses and units approved in the state of Victoria1popnlog total population of the state , in thousandsirateStandard variable interest rate of commercial banks for home loans , annualpercenttTime trendA time series plot and the estimation results for both the Static and FDL models areprovided below .

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