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Macroeconomic theory postulates two alternative specifications to test

the validity of the purchasing power parity (PPP) hypothesis:

(1) et = β0 + β1pdt + ut

(2) Δet = γ1Δpdt + vt

where, e = (log) nominal exchange rate, p = (log.) domestic price level, p* = (log.)

foreign price level, pd = p-p*, Δet = et - et-1 and Δpdt = pdt - pdt-1.

The “Absolute PPP” holds if β1 = 1 and ut is a white-noise process.

The “Relative PPP” holds if γ1 = 1 and vt is a white-noise process.

The following equations are estimated using 40 annual observations.

MODEL A et = 0.04 + 0.98pdt

(2.13) (2.50)

R2 = 0.60, DW = 3.40, LM(AR(1)) = 19.6,

LM(WHITE)) = 1.4, SSR = 100

MODEL B Δet = 0.95Δpdt

(2.05)

R2 = 0.30, DW = 1.9, LM(AR(1)) = 0.9

LM(WHITE) = 15.4, SSR = 1000

MODEL C et = 0.02 + 0.80pdt + 0.20et-1 + 0.40pdt-1

(2.10) (5.06) (3.20) (2.45)

R2 = 0.80, DW = 2.1, LM(AR(1)) = 0.5,

LM(WHITE) = 0.8, SSR = 20.

MODEL D (C-O): et = 0.05 + 0.94pdt

(2.40) (10.8)

R2 = 0.98, DW = 1.9, LM(AR(1)) = 0.5

SSR = 100 LM(WHITE) = 11.1

Model D is estimated by Cochrane-Orcutt (C-O) iterative procedure. The values in

parentheses are the t-ratios.

i)  Test the validity of the absolute and relative PPP hypotheses.

ii)  Explain why the researcher estimated Model B. Considering

Models A and C, state the maintained hypotheses for the estimation of

Model B. Are these hypotheses supported by the data?

iii)  Explain why the researcher estimated Model D. What are the

maintained hypotheses for the estimation of this model? What did the

researcher hope to achieve? Did the researcher succeed?

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PLS HELP!!

Using Spanish resources as much as possible, research a famous historical and/or present cultural figure from a Spanish-speaking country including Latinos in the USA. 

Research one of the following noteworthy people:
Gabriel García Márquez
Valentina Ramírez Avitia
José Octavio "Chepito" Area Dávila
María Eva Duarte de Perón
Rita Moreno

In two well-developed Spanish paragraphs (4-6 sentences each), write a brief biography of a famous Latino/a. 

In paragraph one describe where your person is from, and what line of work they do/did.  
Include interesting details about the person's life and events that the person has/had experienced that are significant.
Give a time frame of when these events occur(red). 
Keep in mind, events that happened once use the preterite tense. Something he/she used to do or that occurred frequently in the past uses the imperfect tense.   

In paragraph two describe his/her important contributions to their country, to Spanish speaking culture, their career, etc. 
What made this person famous or historical? 
Why do they stand out above all the others? What was noteworthy? Llegó a ser famoso/a por...
If this person created something (art, music, legislation, literature), what are your thoughts about a particular work?
If this person liberated or fought for something, what is one question you may want to ask them? Quiero preguntarle...

Use outside sources (Internet, books, magazines, etc.) to gather information for this assignment. However, be sure not to copy the information directly from those sources. Copying information and presenting it as your own work is plagiarism and will result in a failing grade. You will need to rephrase the information into your own words, and cite the source of the information you used. Use the knowledge you have to build on your skills.

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