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Unformatted text preview: Department of Agricultural and Resource Economics Elisabeth Sadoulet and Andrew Dustan University of California at Berkeley Fall 2010 ENV ECON 118 / IAS 118 – Introductory Applied Econometrics Assignment 4 Due Tuesday November 2, at beginning of class MAKE SURE TO REPORT ALL YOUR RESULTS IN PLAIN WORDS AS WELL AS MATHEMATICAL TERMS TURN IN YOUR LOG FILE FROM STATA Exercise 1. Income and price elasticities of car purchase – seasonality and predictions The data (cars.txt) include quarterly car sales in the U.S. from 1975 to 1990: year = 1975.1 to 1990.4 (i.e. 4 observations per year, 1 for each season) qnc = number of new cars sold (in thousands) price = average real price index of a new car in 1982 dollars income = per capita disposable personal income in thousands of 1982 dollars winter = 1 for the winter quarter and 0 otherwise. spring = 1 for the spring quarter and 0 otherwise. summer = 1 for the summer quarter and 0 otherwise. fall = 1 for the fall quarter and 0 otherwise. 1. Consider the following three models: (a) qnc 1 price 2 income u (b) qnc 1 ln price...
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- Spring '11
- Microeconomics, car sales, real price index, average real price