題組內容

4. (15%) Consider the foilowing growth regression model 61dbaf3f86470.jpg where Yi =△ log(GDPi) x1oo andX i = △ log(ex port.) x 1oo are GDP growth and export growth, respectively. Regime1= 1 if the country adopts a fixed exchange rate syster, and otherwise Regime1 = o.

(c) What is the predicted percentage differe rence in GDP growth of a fixer and a non-fixer having the same growth rate of export?