Prof. Bryan Caplan

http://www.gmu.edu/departments/economics/bcaplan

Spring, 1999

Johnston/DiNardo:

Sample problems: (answers pre-provided!): 2.4, 3.9, 3.11, 3.16

Math problems: 2.6, 3.5, 3.10, 3.13, 3.17, 4.4

Computing problems: 2.1, 2.5, 2.9

1. Using the U.S. inflation and unemployment data from HW#1 (still on my webpage), use Eviews to do a multiple regression of unemployment on a constant, inflation, and lagged inflation. Print your results.

2. Run two further regressions of your choice.

3. Use the R²'s to test one hypothesis about 2 or more coefficients. (Do this by hand using formulas from class and tables in the back of the book).

4. Gather data from from an outside source (the Fed websites are one good place to begin) related to some hypotheses you would like to test. Then:

a. Correctly import the data into an Eviews workfile.

b. Type 1 paragraph briefly explaining the questions you are interested, your data source, and how you plan to test your hypotheses.

c. Test two of your hypothesis using OLS.

d. Type 1 further paragraph explaining the implications of your empirical results for your hypothesis.