The demand for roses was estimated using quarterly figures for the period 1971 (3rd quarter) to 1975 (2nd quarter). Two models were estimated and the following results were obtained:

Y = Quantity of roses sold (dozens)
X2 = Average wholesale price of roses ($ per dozen)
X3 = Average wholesale price of carnations ($ per dozen)
X4 = Average weekly family disposable income ($ per week)
X5 = Time (1971.3 = 1 and 1975.2 = 16)
ln = natural logarithm
The standard errors are given in parentheses.
A.ln Yt = 0.627 - 1.273 ln X2t + 0.937 ln X3t + 1.713 ln X4t - 0.182 ln X5t
(0.327) (0.659) (1.201) (0.128)
R2 = 77.8%D.W. = 1.78N = 16

a) How would you interpret the coefficients of ln X2, ln X3 and ln X4 in model A?
What sign would you expect these coefficients to have? Do the results concur with your expectation?
b) Are these coefficients statistically significant?
c) Use the results of Model A to test the following hypotheses:
i) The demand for roses is price elastic
ii) Carnations are substitute goods for roses
iii) Roses are a luxury good (demand increases more than proportionally as income rises)
d) Are the results of (b) and (c) in accordance with your expectations? If any of the tests are statistically insignificant, give a suggestion as to what may be the reason.
e) Do you detect the presence of multicollinearity in the data? Explain.
f) Do you detect the presence of serial correlation? Explain
g) Do the variables X3, X4 and X5 contribute significantly to the...

...ECONOMETRIC ANALYSIS.
INDEX:
- Introduction..................................................................................3
-Background....................................................................................8
-Empirical Analysis.........................................................................9
-Conclusion.....................................................................................31
-Bibliography..................................................................................31
*
INTRODUCTION:
For many years it has tried to explain and predict economic phenomena. In the present work we destructive her to perform an econometric study of the function of the number of travelers who occupy tourist accommodation in Andalusia. The data required for such analysis have been collected from the database of the Institute of statistics and cartography of Andalusia, for easy access through the official website (http://www.juntadeandalucia.es/institutodeestadisticaycartografia/index.html).
The National Statistical Institute(NSI) sends every month to the Institute of statistics of Andalusia provisional results which offers survey during the previous month in the eight Andalusian provinces. The survey is exhaustive in all provinces, except in some categories where sampling procedures are performed.
The estimates are published disaggregated by categories up to the level that allows the maintenance of...

...Introduction to Econometrics coursework
For the assignment I will examine whether or not a linear regression model is suitable for estimating the relationship between Human development index (HDI) and its components. Linear Regression is a statistical technique that correlates the change in a variable to other variable/s, the representation of the relationship is called the linear regression model.
Variables are measurements of occurrences of a recurring event taken at regular intervals or measurements of different instances of similar events that can take on different possible values. A dependent variable is a variable whose value depends on the value of other variables in a model. Hence, an independent variable is a variable whose value is not dependent on other variables in a model.
The dependent variable here is HDI and this will be regressed against the independent variables which include Life expectancy at birth, Mean years of schooling, expected years of schooling and Gross National Income per capita Hence we can model this into Yi = b0 + b1 xi + b2 xi + b3 xi + b4 xi + where Y is HDI, β0 is a constant, β1 β2 β3 β4 are the coefficients and denotes for random/error term.
R2 is how much your response variable (y) is explained by your explanatory variable (x). The value of R2 ranges between 0 and 1, and the value will determine how much of the independent variable impacts on the dependent variable. The R2 value will show how reliable the...

...Applied Econometrics
Applied Econometrics Introduction
Outline FEM11090-12 Applied Econometrics
Nalan Basturk
Erasmus University Rotterdam Econometric Institute basturk@ese.eur.nl http://people.few.eur.nl/basturk/
Introduction Course Introduction Course Organization Motivation Introduction Today Regression Linear Regression Ordinary Least Squares Linear regression model Gauss-Markov conditions and the properties of OLS estimators Example: individual wages Goodness-of-ﬁt
1 / 42 2 / 42
Lecture 1, 3 September 2013
Applied Econometrics Introduction Course Introduction
Applied Econometrics Introduction Course Introduction
About Me
Nalan Basturk
Assistant Professor Econometric Institute Room H11-12 basturk@ese.eur.nl PhD in Econometrics from Erasmus University Rotterdam, Tinbergen Institute Research area: Computational econometrics, Bayesian econometrics, Mixture models Ofﬁce Hours: to be announced on blackboard
Francine Gresnigt PhD candidate at Tinbergen Institute
Role:
gresnigt@ese.eur.nl
assignments and support (teaching material, extra lectures)
3 / 42
4 / 42
Applied Econometrics Introduction Course Introduction
Applied Econometrics Introduction Course Introduction
Course Description
This course provides a guide to modern...

...of Divorce and Unwed Childbearing: First-Ever Estimates for the Nation and all fifty States’, Institute of American Values, New York , < http://www.marriagedebate.com/pdf/ec_div.pdf >, accessed 10th May 2011
Thompson, A.P, 1983, ‘Extramarital sex: A review of the literature,’ Journal of Sex Research, Volume 19 pp. 1-22.
Weiderman, M.W, and Allegeier, E.R, 1996, ‘Expectations and attributions regarding extramarital sex among married individuals,’ Journal of Psychology and Human Sexuality, Volume 8, pp 21-35.
Whisman, M.A, Dixon, A.E, and Johnson, B, 1997, ‘Therapists’ perspectives of couple problems and treatment issues in couple therapy, Journal of Family Psychology, Volume 11, pp. 361-66
Wooldridge, J.M ( 2009) ‘Introductory Econometrics- A modern Approach’, 4th Edition, Southern-Western, USA
Appendix
Figure 1: Medium Income of Families with Children by Struct. in USA 1994 (Fagan 2001)
Figure 2: Families with Children by Income Quintile 1996 (Fagan 2001)
Figure 3: Full list of original data variables and what they mean.
A description of the data used in our models includes:
Number of observations = 601
Id = Unique number for a person - Used to identify a person in the sample
Male = 1 if male, 0 if female
Age = Age in years
Yrsmarr = Is the number of years a person has been married.
Kids = 1 if the person has kids, 0 if the person does not have any kids.
Relig = Religious affiliation.
5 = Very...

...ECO
1 chapter
An overview of regression analysis
Econometrics – literally ,,economic measurement” is the quantitative measurement and analysis of actual economic and business phenomena.
Econometrics has three major uses:
1) Describing economic reality
2) Testing hypothesis about economic theory
3) Forecasting future economic activity
The simplest use of econometrics is description.
For most goods, the relationship between consumption and disposable income is expected to be positive, because an increase in disposable income will associated with increase in the consumption of the goods.
Consumer demand for a particular commodity often can be thought of as relationship between the quantity demanded (Q) and the commodity’s price (P), the price of a substitute good (Ps), and disposable income (Yd).
The second and perhaps most common use of econometrics is hypothesis testing – the evaluation of alternative theories with quantitative evidence.
Normal good – one for which the quantity demanded increases when disposable income increases.
The third and most difficult use of econometrics is to forecast or predict what is likely to happen next quarter, next year, or further into the future, based on what has happened in the past.
Nonexperimental quantitative research:
1) Specifying the models or relationships to be studied
2) Collecting the data needed to...

...Quantitative Methods for Economics
Tutorial 12
Katherine Eyal
TUTORIAL 12
25 October 2010
ECO3021S
Part A: Problems
1. State with brief reason whether the following statements are true, false or uncertain:
(a) In the presence of heteroskedasticity OLS estimators are biased as well as inefficient.
(b) If heteroskedasticity is present, the conventional t and F tests are invalid.
(c) If a regression model is mis-specified (e.g., an important variable is omitted),
the OLS residuals will show a distinct pattern.
(d) If a regressor that has nonconstant variance is (incorrectly) omitted from a
model, the (OLS) residuals will be heteroskedastic.
2. In a regression of average wages, (W , in Rands) on the number of employees (N ) for a
random sample of 30 firms, the following regression results were obtained (t-statistics
in parentheses):
W
=
7.5 + 0.009 N
(N/A)
W /N
= 0.008 + 7.8
(14.43)
R2 = 0.90
(16.10)
(1/N )
R2 = 0.99
(76.58)
(a) How do you interpret the two regressions?
(b) What is the researcher assuming in going from the first to the second equation?
Was he worried about heteroskedasticity? How do you know?
(c) Can you relate the slopes and intercepts of the two models?
(d) Can you compare the R2 values of the two models? Why or why not?
1
3. In 1914, the South African Robert Lehfeldt published what has become a well-known
estimate of a price elasticity of demand that relied on a double logarithmic specification. Lehfeldt reasoned that variations in weather...

...interview? How much smaller would this number be if a confidence interval with a confidence coefficient of 0.8 (i.e. an 80% CI) were required, rather than 0.99? [3 marks] (d) Now assume that a subsample of 50 of these firms is connected to the clothing and footwear sector and they were also asked about the size of typical orders for their product. The mean and standard deviation of this sample were $X and $275, respectively. If a test of the hypothesis H0: μ=1400 against a 2-sided alternative yielded a P-value of 0.05, what was the value of X? [2 marks] (e) Set up a 95% confidence interval for the population variance for the problem of part (d) and explain why it is not symmetrical about the sample value. [2 marks]
5
Question 4
(a) An econometric consultant has been supplied with n observations on a pair of variables (X,Y) and is interested in modelling the relationship between them. Explain what the covariance and also the correlation between the two variables measure and how they can be computed. [2 marks] (b) Consider the simple linear regression model Yi 0 1 X i i , i 1, n , What assumptions are usually made about the error terms in this model and why are they needed? [2 marks]
(c) The following summary output (Table 1) is from a regression equation estimated using Microsoft Excel. The dependent variable (Y) is the List Price of MP3 players in Australia (measured in Australian dollars and ranging from $40 to $194) and the regressor...

...
AN ECONOMETRIC ANALYSIS OF ENERGY CONSUMPTION AND ECONOMIC GROWTH IN TURKEY
ABSTRACT
It is commonly maintained that energy is an imporant input of industrial growth and, in this way, economical development. The scarcity of energy resources in the world make the relation between economic development and energy consumption more significant. In this study, the possible cointegration is inspected by Engle-Granger and Johansen Tests and the direction of the causality is searched by Granger causality test. The analysis showed that there is a long and short term relationship between economic growth and energy consumption in Turkey fort he period of 1980-2006.
1. INTRODUCTION
Since the Industrial Revolution, the demand for energy has followed an increasing trend, globally. Due to the unequable distrubition of available energy resources in the world and increasing demand for these resources, countries have started to search new energy methods for decades.
Energy, as a production factor, is one of the most significant inputs of industrial and economical development. Especially after the oil crisis in 1973 and its destructive impacts on economies, the relation between energy and economic growth have been begun to study. However, there is still a conflict about the direction of the causality relationship between them. There are different researches on whether rising energy consumption triggers to economic growth or economic growth causes an increase in...