Suppose you have quarterly data on new housing starts, interest rates, and real percapita income.

Suppose you have quarterly data on new housing starts, interest rates, and real percapita income. Specify a model for housing starts that accounts for possible trendsand seasonality in the variables

In this particular the most a reasonable one is log(hsestrtst) = 0 + 1t+ 1Q2t+ 2Q3t+ 3Q3t+1intt+2log(pcinct) + ut, Where Q2t, Q3t, and Q4tare quarterly dummy variables (the omittedquarter is the...