Economics 312

Spring 2011
Econometric Project #5

Due 6am, Tuesday, April 5

Hill, Griffiths, and Lim, Problems 8.17, 9.14, and 9.22

This project involves doing three of HGL's applied problems dealing with heteroskedasticity and time-series modeling from Chapters 8 and 9. As always, you will work in teams of two students each, as assigned below.

For this assignment, your report should be in three separate parts, one for each problem.

Problem 8.17 returns to the Baton Rouge housing data set to explore the possibility of heteroskedasticity and vaious ways of dealing with it.

Problem 9.14 explores the time-series relationship between the price of sugar cane in Bangladesh and the number of acres of cane planted. As an additional section of part d, please compute standard errors of the estimators of the beta coefficients. Note that you will need to create and "year" variable in Stata in order to define the dataset as time series. Since we don't know the year numbers, just use gen year = _n to create one starting at 1.

Problem 9.22 considers the dynamic relationship between income and consumption using quarterly U.S. data. The do-file time.do can be downloaded and run. As part of your data introduction, look at this file and explain how it creates the Stata variable time that corresponds to the appropriate sample period.

Datasets

Problem 8.17: br2.dta br2.def
Problem 9.14: bangla.dta bangla.def
Problem 9.22: consumptn.dta consumptn.def

Project Teams

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