Economics 312

Spring 2011
Econometric Project #4

Due 6am, Tuesday, March 8

Hill, Griffiths, and Lim, Problems 5.25, 6.9 and 6.17

This project involves doing three of HGL's applied problems from Chapters 5 and 6. As always, you will work in teams of two students each, as assigned below.

For this assignment, your report should be in two separate parts, one for Problems 5.25 and 6.9, which are related, and one for Problem 6.17.

Problems 5.25 and 6.9 explore estimation of a Cobb-Douglas production function for time-series data on U.S. manufacturing. (There are lots of special difficulties with time-series estimation that we have not yet explored. You are not expected to be able to deal with these yet.) Problem 6.9, as written, is particularly sterile. In your report, I want you to go into detail not only about the results of the hypothesis tests, but about what they mean in terms of economics and production technology.

Problem 6.17 explores another dataset on hedonic analysis of housing prices. (This is the dataset on Stockton, California, used in the sample report on Problem 2.12.) This problem adds more complex hypothesis tests to the kind of tests you did last week in Problem 5.13 in the Baton Rouge, Louisiana, dataset.

Datasets

Problem 5.25 and 6.9: manuf.dta manuf.def
Problem 6.17: stockton4.dta stockton4.def

Project Teams

Project teams for the first assignment are below, with partners for this assignment shown in the rows of the table.