MECE-102 English Medium Solved Assignments 2025-26

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MECE-102 English Medium Solved Assignments 2025-26 Available

Section A
3. a) What is meant by identification problem in a simultaneous equation model?
b) In the following two-equation system check the identification status of both the equations.
𝑌1 =∝1+∝2 𝑌2 + 𝛽1𝑍2 + 𝑢1
𝑌2 = 𝛽2 + 𝛽3𝑌1 + 𝛽4𝑍1 + 𝛽5𝑍2 + 𝑢2
c) Explain how the first equation in the above model can be estimated.
4. Distinguish between weak stationarity and strong stationarity. Explain the methods of testing for stationarity in a univariate time series model.
Section B
5. What is the underlying idea behind the logit model? Explain how the parameters of the logit model
can be estimated by maximum likelihood method.
4. What is meant by dynamic model? Explain how the following model can be estimated?
𝑦𝑡 =∝ +𝛽𝑥𝑡 + 𝛾𝑦𝑡−1 + 𝑢𝑡
where |𝛾| < 1 and 𝑢𝑡 = 𝜌 𝑢𝑡−1+ 𝜀𝑡
. In the above model 𝜀𝑡 is the usual stochastic error term with
mean zero and variance 𝜎 and |𝜌| < 1.
6. For what purpose is the Box-Jenkins methodology used? Write down the steps of the above method.
6. Justify the need for Autoregressive Conditional Heteroscedasticity (ARCH) model. Explain how
you would carry out a test for ARCH effect in a data set.
7. Write short notes on the following:
c) Generalised-ARCH model
d) Need for Dynamic Panel Data Models