Purchasing Power Parity Essay Example | Topics and Well Written Essays - 15000 words

Purchasing Power Parity - Essay Example A new Eviews workfile is generated from the main menu of the Eviews by selecting File/New/Workfile, which opens up the create workfile dialogue box. Dated-regular frequency is chosen as the workfile structure type, frequency is chosen as monthly with the start date as 1990-1 and end date as 2011-03 as shown in fig1. The data from the excel is then imported by selecting the Proc/Import/Read Text-Lotus-Excel options of the main menu and choosing the dataset Data_Canada_PPP.xls. The number of series is entered as 3 in the Excel spreadsheet import dialogue box as shown in fig2. The data is imported successfully and is verified with the original data in the excel sheet by opening the generated data as shown in fig 3. Fig 1 Generate New Workfile Fig 2 Enter the number of series of Data Fig 3 Verifying the imported data 2) Generating Real Exchange Rate qt Real Exchange Rate qt is obtained by the formula: qt = st – pt + pt* -------- 1 where st = log(Exchange_rate) -------- 2 pt = log(CPI_Can) -------- 3 pt* = log(CPI_US) -------- 4 The formulae 2 to 4 are first generated using the Genr option in the workfile. The value of qt is then generated using the formula 1. The generated qt is shown in fig 3. e Fig 3 Value of qt 3) Plotting the graph (qt) Fig 4 shows the graphical view of series of values of qt. ... This can be tested using: Interpretation from Graphical representation: A non-stationary series produces lines with definite upward and downward trend with the passage of time, whereas a stationary series does not produce any such lines. Observing the Correlogram or Autocorrelation function (ACF): For a stationary process, the ACF will decline to zero in a quicker fashion whereas for a non-stationary process, the ACF declines in a linear fashion. From the graphical representation of real exchange rates between Canada and US shown in fig 4, it can be noted that the real exchange rate is likely to have some sort of random walk-up and walk-down pattern over the period of time. The presence of random walks indicates that the series qt seems to show non-stationarity in behaviour. However, the random walk does not show any increasing or decreasing trend. 4) Unit Test Root Non-stationarity of a process is characterized by the presence of unit root. In order to test whether the process is st ationary or not, it would suffice if we can check for the presence of unit root. This check can be performed by employing Augmented Dickey-Fuller’s test. The overall objective of this test is to test the null hypothesis that ? = 1 in: yt = ? yt-1 + ? + ut against the one-sided alternative ? < 1. So we define the hypothesis as H0 : yt = yt-1 + ? + ut (qt is non-stationary, ? =1) H1 : yt = ? yt-1 + ? + ut (qt is stationary. ? < 1) Subtracting the above equation with yt-1, we get the simplified equation as: ? yt = ? yt-1 + ? + ut Where ? = ?-1. Now the hypothesis for the presense unit roots can be written as: H0 : ? =0 (qt contains a unit root and is

Christology Essay Example | Topics and Well Written Essays - 500 words - 1

Christology - Essay Example Parables can also easily be transformed to different situations, cultures and modern societies. They offer a real-life experience version and a psychological and spiritual accuracy. Jesus never just handed out the truth on a silver platter. He wanted the people to really think about their meaning and the impacts. Jesus’ parables, on the one hand, referred to everyday life situations, such as the ‘Parable of the Sower’ (Mark 4:1-20), the ‘Parable of the Good Samaritan’ (Luke 10:30-37) or the ‘Parable of the Pearl’ (Matthew 13:44-46). These parables deal, on the other hand, with much heavier messages about religious themes such as the Kingdom of God and the importance of praying (John). According to the Merriam-Webster Dictionary, a Gospel is a â€Å"message concerning Christ† or â€Å"one of the first four New Testament books†. According to history, the Gospels were written at least 30 years after Jesus’ death. Can these Gospels be accurate accounts? Many believers agree on this and blindly follow the words of the writers, but since scholars started to research the Gospels, they discovered that Jesus in the Gospels is quite different than Jesus in the historic accounts (Albl 276). Five of the main points of dispute are these mentioned in Albl (281-282). The first point is that the Gospel of John differs from the Gospels of Matthew, Mark and Luke. The second is that the first Gospel was written approximately 30 years after Jesus’ death, which means that it is not an eye-witness account. The third is that Jesus spoke Aramaic and the Gospels are written in Greek. The high ‘supernatural’ incidents that raise questions of reliability is number four and number five is that the Gospels were written to encourage faith. Supporting the last point given by Albl (282), that the Gospels were written with the explicit purpose to encourage faith, is the rumor that the Christian church burned