A Simultaneous Technique Estimation of Keynesian Economic Growth Model

Nureni, Olawale Adeboye and Agunbiade, Dawud Adebayo (2020) A Simultaneous Technique Estimation of Keynesian Economic Growth Model. In: International Webinar on Recent Advancements in Mathematical Sciences and its Applications, organized by Department of Mathematics, Chakdaha College, Nadia, West Bengal, India, 3rd & 4th September 2020., West Bengal, India.

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Abstract

This research compared different Simultaneous techniques in the estimation of Keynesian model specified to estimate the effects of International trade on the Economic Growth of Nigeria within the periods of 1991 to 2018. The study reveals that truly Keynesian theory of consumption can promote production because consumption responds perfectly to the output in the previous periods. Consumption responds to 72% output while investment responds to 38 % output in the previous year and a unit increase in time with first lag of consumption and investment fixed, bringing about 14% and 0.03% increase in consumption and investment respectively. The t-statistic shows that the first lag of consumption and investment are significant each in their respective equations while F- statistic revealed that all parameters are simultaneously significant in their respective equations. The estimators (2SLS, 3SLS, FIML and LIML) were compared based on Root Mean Square Error, it shows that Full Information Maximum Likelihood (FIML) is the best in estimating the system of Simultaneous Equation because of its least RMSE value.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	Q Science > QA Mathematics
Divisions:	Faculty of Engineering, Science and Mathematics > School of Mathematics
Depositing User:	Mr Taiwo Egbeyemi
Date Deposited:	10 Feb 2022 09:48
Last Modified:	10 Feb 2022 09:48
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/1854

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