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Unformatted text preview: Problem Set 2 EEP162-Spring 2007 Due in Lecture Monday March 5 Question 1: Please read the paper by Renzetti and Dupont (on the problem set page). A What are the similarities and differences between this paper and that of Babin with respect to: the source of the data; the type of input data included in the study; and the functional form used to estimate the demand equations. B What are the similarities and differences between the research questions investigated by this paper versus Babin? Explain in your own words -- what it means if water is a fixed and not a variable input, and what the economic significance is of this distinction. C How do the empirical findings in this paper differ from those of Babin? Question 2 : Computer Exercise This question requires you to use an excel data set to do some basic regression analysis. The name of the data set is the Berndt-Wood KLEM data and it is available on the course page. KLEM stands for capital (K), labor (L), energy (E) and materials (M). There is also a guide to the KLEM data on the course page that goes through the initial steps of how to begin answering this question. The initial part of that guide is not directly applicable to the problem set, so dont get confused. of that guide is not directly applicable to the problem set, so dont get confused....
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- Spring '07