are106-homework-4

are106-homework-4 - Econometrics Homework 4 ARE 106 Winter...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ARE 106 Econometrics Homework 4 Winter 2010 A. Havenner Read the Engel curve application in section 3.7 in the text and examine the annotated computer output provided earlier (on the web page) and the output in the book on pages 107-109. You should run Practice Computer Session 3.3 is associated with this example. It uses input command file ps3-3.inp (which automatically reads data3-2). Be sure you can link the items on the computer output to the things discussed in class. However, the output from this run is not related to the questions below, and you need not turn anything in for this part. I just want you to follow exactly the logic in the book. Computer Problems: 1. Many economic variables grow more or less with time. The data on annual US patents and research and development (R&D) expenditures from 1960 - 1993 in data3-3 are an example. The patents are measured in thousands, while the R&D expenditures are in billions of dollars; a series giving the year is also provided. See "DatalRead info" for details. Use this dataset to answer the following questions: [5] (i) Suppose we are interested in forecasting patents, and we are considering using time (YEAR) as the regressor. Graphl the data to see how patents grow over time. Do you think the simple linear model will fit this data series very well, based on the plot? [5] (ii) Would the regression on time be your model of choice given only the information available in this dataset? Very briefly, why or why not? [6] aii) Run a regression relating patents to an intercept and the year, and report the results in standard format. What is the estimate of the regression intercept a? In what units is it measured (e.g., dollars? percent? some other?)? What is the estimate of the slope~? In what units is it measured?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern