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Unformatted text preview: ECON346 Econometrics week1.doc 1 Meaning of Econometrics : Literally “Economic Measurement” 1) Quantitative measurement and analysis of actual economic and business phenomena. 2) Allow us exam data and to quantify the actions of firms, consumers, and governments. Usages of Econometrics: 1) Describing economic reality 2) Testing hypotheses about economic theory 3) Forecasting future economic activity Necessary Steps for any kind of quantitative research 1) Specifying the models or relationships to be studied 2) Collecting the data needed to quantify the models Data Type: a. Time Series data: observations for different time periods b. Cross-section data: measurements at a given point in time c. Panel data: Pooled cross-section and time series data 2) Quantifying the models with the data ( Econometric Technique): Estimates 3) Testing the Hypothesis: The goal is to find robust conclusion 4) Interpreting the results : Policy Implication What is Regression Analysis? Regression analyses to make quantitative estimates of economic relationship that previously have been completely theoretical in nature. ECON346 Econometrics week1.doc 2 MSA Home Price Chag NV-Las Vegas-83% AZ-Phoenix-72% FL-M iam i-64% M I-Detroit-56% FL-Tampa-54% CA-Los Angeles-44% CA-San Francisco-43% CA-San D iego-42% MN-M inneapolis-31% DC-Washington-30% IL-Chicago-29% NY-New York-22% GA-Atlanta-20% WA-Seattle-19% OR-Portland-18% OH-C leveland-14% MA-Boston-12% CO-Denver-8% NC-Charlotte-8% TX-Dalas-3% T X- D a lla s N C- C h a r lo t t e C O- D e n v e r M A- B o s t o n O H- C le v e l a n d O R- P o r tl a n d W A- S e a t tl e G A- A t la n t a N Y- N e w Y o r k I L- C h ic a g o D C- W a s h in g t o n M N- M in n e a p o li s C A- S a n D i e g o C A- S a n F r a n c is c o C A- L o s A n g e le s F L- T a m p a M I- D e t r o it F L- M i a m i A Z- P h o e n ix N V- L a s V e g a s 0.00%-10.00%-20.00%-30.00%-40.00%-50.00%-60.00%-70.00%-80.00%-90.00% MSA Home Price Chages (Jun06-Jun10)-2.74%-7.59%-7.65%-11.97%-13.64%-17.81%-19.14%-19.98%-22.26%-29.11%-30.09%-30.55%-42.11%-42.54%-44.17%-53.95%-56.41%-63.85%-71.74%-83.15% C ha r t o f H o m e P r ice C ha g e s (J un 0 6 -J un 1 0 ) 0 . 0 0 %- 2 0 . 0 0 %- 4 0 . 0 0 %- 6 0 . 0 0 %- 8 0 . 0 0 % 4 3 2 1 H o m e P r ic e C h a g e s ( J u n 0 6 - J u n 1 0 ) Frequency H i s t o g r a m o f H o m e P r i c e C h a g e s ( J u n 0 6 - J u n 1 0 ) Types of Data for Econometrics 1. Time Series data: observations for different time periods Example) Year Month 2010 2006 2002 1998 1994 1990 Jan Jan Jan Jan Jan Jan 180 160 140 120 100...
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This note was uploaded on 02/16/2011 for the course BUS 355 taught by Professor White during the Spring '11 term at UChicago.
- Spring '11