On the Insert tab, the galleries include items that are designed to coordinate with the overall look of
your document. You can use these galleries to insert tables, headers, footers, lists, cover pages, and
other document building blocks. When you create

Announcement
Problem Set #7 is due Thursday (October 30th).
1
Problem Set 7
3. C. W. Cobb and P. H. Douglas, A Theory of Production, The American
Economic Review, 18, 139-165 (1928).
2
Problem Set 7
3
Problem Set 7
4
Problem Set 7
5
Problem Set 7
6
The

Announcement
Problem Set #9 is due Thursday (November 20th).
1
Problem Set 9
1. Using the multiple regression analytics you developed in the last problem set, calculate
the coefficients for the unrestricted regression of Equation 12 for OECD countries sh

Announcement
The second midterm will be held Thursday (Nov 6th).
Your room assignment is based on the first 3 letters of your last name as follows:
1) AAA - NAA: 166 Barrows.
2) NAA - ZZZ: 102 Moffitt (our usual classroom).
1
Problem Set 7
1. Given the

Announcement
Problem Set #9 is due Thursday (November 20th).
1
Second Midterm
Maximum
Minimum
Mean
Median
SD
46.0
23.0
41.8
43.0
4.72
40
35
30
25
20
Frequency
15
10
5
0
25
30
35
40
45
50
Scores
2
Question 1
(6 pts) Fill in the missing values in the tabl

Announcement
Problem Set #7 is due Thursday (October 30th).
1
Problem Set 6
1. What is it according to Keynes that the forces of disillusion impose? Compare
this with Minskys observation of what happens to acceptable debt structures when
anything goes wr

Announcement
Problem Set #5 is due Thursday (October 16th).
1
First Midterm
53.0
23.0
44.6
47.0
7.58
30
25
20
Frequency
Maximum
Minimum
Mean
Median
SD
15
10
5
0
25
30
35
40
45
50
55
More
Scores
2
Question 1
1. (3 pts) Given the August 2014 housing data s

Announcement
Problem Set #5 is due Thursday (October 16th).
1
Question 1
In the 3-equation model, we have assumed that central
bank is able to achieve the output gap it desires in order to
stabilize the economy by setting the policy interest rate.
In t

Announcement
Problem Set #6 is due Thursday (October 23rd).
1
Question 1
1. Draw the movement (of and/or along) the curves in the rate-output and inflationoutput planes that would result if the banking sector decided that a loan product was
safer than pr

Announcement
Problem Set #6 is due Thursday (October 23rd).
1
Problem Set 6
1. What is it according to Keynes that the forces of disillusion impose? Compare
this with Minskys observation of what happens to acceptable debt structures when
anything goes wr

Announcement
Problem Set #4 is due Thursday (October 2nd).
The first midterm takes place next Tuesday (October 7th).
1
Question 2
2
Question 3
3
Question 4
The loss function the central bank now wants to minimize is
L = ( yt yH )2 + ( t T )2
The constrain

Announcement
1
The first midterm takes place from 3:30 5:00 tomorrow (October 7th).
The midterm exam will be given in two rooms. Your room assignment is based on
the first 3 letters of your last name as follows:
AAA - NAA: 102 Moffitt (our usual classroom

USC, Fall 2016, Economics 513
Lecture 1: Empirical economic relations
What is econometrics?
Econometrics is concerned with the measurement of economic relations.
So we need to know
What is an economic relation and why do we want to measure it?
How do we

Example of Demand Curves
The Demand Curve shows the quantity of sugar purchased in a month at a specific
price of sugar holding all other factors constant.
Price of
Sugar
Demand Curve
P
Q
Quantity of Sugar
Purchased in a Month
1
Movement along a Demand
Cu

Announcement
Problem Set #10 is due Tuesday (December 2nd).
1
Problem Set 10
1. Sanctions against Russia have created some interesting challenges for the Hong
Kong Monetary Authority. Refer to the Bloomberg article Hong Kong Defends Peg
as Sanctions Fuel