Just for CW, I recalculated the Federal Trade Deficit Model with the inclusion of two more parameters: the Dollar Value and Manufacturing Jobs. Manufacturing jobs is really already partly included in the unemployment figures parameter, and like the unemployment variable, the decline of manufacturing jobs over the past 60 years does not have much effect on the federal trade deficit (low t statistic). On the other hand, the value of the dollar has a very strong correlation with the trade deficit, as one would suspect (thanks CW for pointing out this omission). As the value of the dollar increases in value the trade deficit will decrease. By adding these two parameters into the model, it does increase both the accuracy and predictability of the model. Also, by adding these parameters to other economic models I have created such as the GDP Model, Inflation Model, Unemployment Model, and so on, it also improves those models (although it only improves them, on average, by about 1 to 2 percent). Interestingly, in this model, Personal Income and Dollar Value are complete opposites (equal magnitude but opposite polarity).
R2 0.99
Adjusted R2 0.98
SE 28.72
Term Coefficient 95% CI SE t statistic DF p
Intercept 859.9 187.2 to 1532.6 334.56 2.57 48 0.0133
Population -2.474 -4.242 to -0.706 0.8791 -2.81 48 0.0071
Unemployment 6.821 -9.481 to 23.123 8.1079 0.84 48 0.4044
Inflation 0.05206 -3.24278 to 3.34690 1.638705 0.03 48 0.9748
GDP 0.1196 -0.0472 to 0.2864 0.08297 1.44 48 0.1560
Debt 0.2018 0.1419 to 0.2617 0.02980 6.77 48 <0.0001
Tax Receipts 0.2149 -0.0898 to 0.5197 0.15156 1.42 48 0.1626
Gov Spending -0.4649 -0.8331 to -0.0967 0.18314 -2.54 48 0.0144
Budget 0.3966 0.0233 to 0.7699 0.18566 2.14 48 0.0378
Consumer Spending -0.9805 -1.2533 to -0.7078 0.13567 -7.23 48 <0.0001
State Deficit -1.594 -2.576 to -0.612 0.4882 -3.27 48 0.0020
State Social Payment 3.317 1.430 to 5.205 0.9389 3.53 48 0.0009
Gov Social Benefits -0.9611 -1.6984 to -0.2239 0.36670 -2.62 48 0.0117
Personal Income 0.4515 0.2116 to 0.6914 0.11931 3.78 48 0.0004
Dollar Value -412.1 -631.6 to -192.6 109.15 -3.78 48 0.0004
Manufacturing Jobs 0.002455 -0.020017 to 0.024927 0.0111767 0.22 48 0.8271
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