Examines applications of statistical techniques to economic data, regression analysis, and estimation of economic models. Includes violations of the regression model and analysis of variance.
Assignment 1: The Two-Variable Model
Write a 4-5 page paper in which you:
• Develop and discuss a relationship that can be modeled with a simple regression.
• State the model in mathematical terms.
• Estimate the model and interpret the meaning of the coefficient estimates.
• Discuss a hypothesis test that would help confirm your theory.
Assignment 2: Multiple Regression
Write a 4-5 page paper in which you:
• Develop a theory based on the first assignment that could be estimated with multiple regression.
• State the model in mathematical terms.
• Estimate the model and interpret the meaning of the coefficient estimates.
• Compare the results from the regression in Assignment 1 with the results from the regression in Assignment 2.
• Discuss which model better explains changes in the dependant variable.
Assignment 3: Course Project - Prospectus
A course project which requires you to develop a mathematical model of an economic theory of your choosing (or of your own development), collect data to test your hypothesis, estimate your mathematical model, and draw conclusions to support your theory.
The course project prospectus ensures you are on your way toward completing the course project, and provides the professor the opportunity to provide feedback before the final project is completed.
For this assignment, write a 4-6 page paper in which you:
• Describe and discuss the theory or hypothesis you wish to discuss in your paper.
• Describe the model you plan to discuss.
• Determine the data sources you will use to estimate your model and explain why you feel these data sources are appropriate.
• Provide an annotated bibliography of at least six (6) peer-reviewed publications focused on your topic.
Assignment 4: Model Selection and Specification Errors
Write a 4-5 page paper in which you:
• Perform a regression restating the regression into one or more of the functional forms discussed in Chapter 5 and interpret the meaning of the coefficient in your new model.
• Identify a qualitative attribute or category that could affect your dependent variable, and discuss the dummy variables that you would create to estimate these categorical differences.
• Discuss any potential specification errors that may exist within your model.
• Perform tests to identify potential specification errors and discuss remedial actions based on your testing results.
Assignment 5: Course Project
Write an 8-10 page paper in which you:
• Develop a theory or hypothesis about some economic relationship.
• Based on your theory and research, specify a mathematical model of your theory.
• Identify and collect data to test your hypothesis.
• Use econometric methods to estimate your mathematical model.
• Use statistical inference to draw conclusions to support your theory.
• Include at least six (6) references (no more than three years old) from material outside the text(s).