year catch effort 1962 51.0567 1963 44.3 1964 48 44.54 1965 44.826 59.9788 1966 39.208 45.3769 1967 48.278 46.6083 1968 37.819 52.2453 1969 31.992 54....

year    catch  effort

1962   51.8    50.0567

1963   44.3    44.3

1964   48       44.54

1965   44.826 59.9788

1966   39.208 45.3769

1967   48.278 46.6083

1968   37.819 52.2453

1969   31.992 54.1197

1970   29.894 35.6082

1971   39.406 61.2475

1972   34.279 54.7616

1973   27.958 46.5664

1974   36.407 28.5148

1975   27.827 27.1653

1976   33.71  38.8333

1977   32.888 22.0711

1978   35.804 31.362

1979   38.95  25.6873

1980   29.157 19.38

1981   23.748 21.7888

1982   28.333 20.1047

1983   31.945 27.1808

1984   18.434 17.9237

1985   22.531 18.9703

1986   25.587 22.3778

1987   29.777 16.8984

1988   27.906 20.1961

1989   25.757 16.4284

1990   24.503 15.5728

1991   16.608 17.144

1992   18.162 15.7857

1993   18.371 12.1206

1994   16.993 10.3118

1. Use the data to estimate a simple regression equation of the following form:

catcht  = b0  +b1effortt + et

Report your findings in either table or equation form. Does this regression satisfy CR3? Please show and explain your test for serial correlation at the 95% significance level. Present your results and explain your conclusion

2. Please specify and estimate a better regression model that you can defend, on the basis of economic theory, to explain the production of tuna as a function of effort. Explain why this functional form is better. Present and interpret your results. What is the elasticity of output with respect to effort in this new model?

3. Is serial correlation a problem with the model in (2)?  Please carefully present the results of your test for serial correlation (use the 95% significance level), present your results, and explain your findings.

4. Now re-estimate the model in (2) using the Newey-West method. Report your results and compare them with what you got in (2). What is different, and why?

5. Is there evidence that the marginal product of effort has changed over time?  How? Please show your work, explaining how you test for this and what you find.

6. Does the model in (5) exhibit serial correlation? Please test for this at the 95% level

and present your test results. Is the result different than in (3)? Please speculate on why or why not.

Please answer 2-6 specify as soon as possible . Thank you so much emergency