321_F11_slides1

321_F11_slides1 - Click to edit Master subtitle style Econ...

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Unformatted text preview: Click to edit Master subtitle style Econ 321 - Stphanie Introduction Econ 321 Introduction to Econometrics Fall 2011 Econ 321 - Stphanie 11 Prof. Stphanie Lluis Office: HH 239 Office hours: M-W: 10-11:30am Econ 321 - Stphanie Why Econometrics? The most important questions of life are, for the most part, really only problems of probability . Pierre Simon, Marquis de Laplace A knowledge of statistics is like a knowledge of foreign languages; it may Econ 321 - Stphanie 22 Econ 321 - Stphanie Why Econometrics? Summarize large amounts of data in a compact fashion Labor Force Survey (LFS) file with 150,000 observations on earners Compustat file with annual data on 1,000s of firms Econ 321 - Stphanie 33 Econ 321 - Stphanie Why Econometrics? Provides a method of examining facts and data generated from a large number of cases to determine if they are consistent with theories Econ 321 - Stphanie 44 Econ 321 - Stphanie Why Econometrics? Example of issues Does an attendance award program reduce absenteeism Increases in the minimum wage reduce employment Training programs improve performance Econ 321 - Stphanie 55 Econ 321 - Stphanie Why Econometrics? Determine the magnitude of the relationship (important for policy decisions) An A% increase in the minimum wage is associated with a B% decline in teenage employment Piece rate workers produce H% more output than hourly workers Following training program X, productivity rose by Y% If a firm is going to invest in a program, it needs to know the rate of return, determined by the improvement in productivity Econ 321 - Stphanie 66 Econ 321 - Stphanie Why Econometrics?...
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321_F11_slides1 - Click to edit Master subtitle style Econ...

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