Econ 299 Review - TimeSeries,CrossSectional&Pooled Data...

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Data 1.   Time Series Data -One location’s data across time -Yearly, monthly, quarterly (every three  months), weekly, daily, etc. -ie: Canadian GDP, Enron stock value,  your height, U of A tuition, world pop.
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Data 2.   Cross-Sectional Data -Multiple Locations at one time -Taken at same time (September report,  January report, etc.) -ie: stock portfolio, player stats,  provincial GDP comparison, grade  report
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Data 3. Pooled Data -Combination of Time Series and Cross- sectional Data -More difficult to use -Often required due to data restrictions
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General Equations Nominal Value = (Price Index/100)  X   Real value Or Real value =  Nominal value / (Price Index/100)
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1.2.2 Laspeyres Price Index -uses base year quantities as weights -still = 100 in base year L t  = ∑ prices t  X quantities base year            ----------------------------------  ∑ prices base year  X quantities base year -tracks cost of buying a fixed (base year)  basket of goods (ie: CPI)
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1.2.2 Paasche Price Index -uses current year quantities as weights -still = 100 in base year P t  = ∑ prices t  X quantities t ---------------------------------- ∑ prices base year  X quantities t -compares cost of current basket now to  cost of current basket in base year
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1.2.4 Nominal, Relative, and Real                Price Indexes Nominal Price Index – -price index for a good or service  -describes movement of prices over  time ie: education, gas, coffee Note: CPI (consumer price index) for all  goods is used to measure inflation
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1.2.4 Nominal, Relative, and Real                Price Indexes Relative Price Index – -price index for a good or service  relative to another -describes movement of prices over  time compared to another good or  service Relative Price Index = Price Index A                                         ---------------------------------- Price Index B
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1.2.4 Nominal, Relative, and Real                Price Indexes Real Price Index – -price index for a good or service  relative to all others -describes movement of prices over  time compared to all other goods Real Price Index  = Price Index A                                               ----------------------------------    CPI (all goods)
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r real  = (1+r nom -1-inf)    ---------------- (1+inf) r real + r real *inf = r nom -inf   (r real *inf is small) r real   = r nom  – inf Last example: r real  = 2%-3%=-1% 1.4.2.1 Easy Interest Formula
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1.4.3.2 More Frequent Compounding If interest is compounded m times a year, 1/m 
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Econ 299 Review - TimeSeries,CrossSectional&Pooled Data...

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