The accompanying table gives data
on personal savings (Y) and personal income (X)
, both in billions of dollars for
the years 1970-1991.
Perform chow test using log-linear or linear model, treat 1981 as a breakpoint.(Eviews)
To see if there has been a significant change in the savings-income
relationship for the period 1970-1980 and 1981-1991, show what steps for
carrying out the Chow Test? What general conclusion can be drawn? (Suggested
Answer)
