Nowadays analysis of various econometric models is used to study a significant amount of updated statistical information and find out relationships between statistical economic indicators, that were not investigated earlier. Main idea of investigation in this research work — to find out whether factors influence on the GRP, Consumption, Profit of the organizations and Investments or the model is outdated and non-applicable nowadays. The results obtained in the framework of this research will give us understanding changing which factors (exogeneous variables) — for example, increasing or decreasing credit and deposit rates, tax rates will rise national income, consumer expenditure, investment and operating surplus and, as a result, will accelerate economic development of the Russian Federation. The purpose is to evaluate whether the Menges model which includes all the indicators mentioned as dependent variables is applicable in the modern conditions of the Central Federal District in Russia or not and to find out whether there are other factors which also have an impact on endogenous variables. The object — a set of the panel data of economic statistical information of the Central Federal District in Russia (2008–2013). The subject — the reduced form of Menges model including GRP, Consumption, Profit of the organizations and Net Investments. According to our research, it is reasonable enough to increase the volume of industrial production in order to increase GRP both economically and with the help of the Menges econometric model. Besides that, it is also reasonable to increase the volume of industrial production in order to get a higher cost of investment.
Identifying Reduced-Form Relations with Panel Data
