Download presentation

1
**Applied Econometrics Second edition**

Dimitrios Asteriou and Stephen G. Hall

2
**What is Econometrics? The Stages of Econometric Work**

INTRODUCTION What is Econometrics? The Stages of Econometric Work

3
What is Econometrics? Econometrics means measurement (metrics in greek) in economics. The importance of applied work in economics is increasing constantly. Theory suggests that X affects Y but is this true or not? This is the work of the applied econometrician.

4
What is Econometrics? Examples of problems that may be tackled by an Econometrician Modelling long-term relationships among prices and interest rates. Examining the effect of inflation in unemployment rates Examining the effect of disposable income on consumption

5
What is Econometrics? Examples of problems that may be tackled by an Econometrician (continued) Determining the factors that affect GDP per capita growth Testing the validity of the CAPM and APT theories Forecasting the correlation among the returns and the stock indices of two countries.

6
**The Stages of Applied Econometric Analysis**

Economic Theory Econometric Model Data Model Estimation Specification Testing and Diagnostics Is the Model Adequate? No Yes Test any hypothesis Use for Predictions and Policy Making

7
**The Structure of Economic Data**

There are three different types of economic data TIME SERIES CROSS SECTIONAL PANEL DATA

8
**The Structure of Economic Data**

Time Series Data Examples: GDP, Unemployment, Inflation, Stock Prices, etc Vectors or Columns (like in a spreadsheet) Frequencies: Yearly, Bi-annually, Quarterly, Monthly, Weekly, Daily, Hourly. Lots of different values for different time periods for one country, state, city, market.

9
**The Structure of Economic Data**

Cross-Sectional Data Examples: GDP, Unemployment, Inflation, Stock Prices, etc. Vectors or Rows (like in a spreadsheet) Frequencies: Yearly, Bi-annually, Quarterly, Monthly, Weekly, Daily, Hourly. Lots of different values for different countries, states, cities, markets, but for one time period only.

10
**The Structure of Economic Data**

Panel Data A combination of time series and cross-sectional data. Examples: GDP, Unemployment, Inflation, Stock Prices, etc. Matrices (columns and rows to make an n times m matrix) Frequencies: Yearly, Bi-annually, Quarterly, Monthly, Weekly, Daily, Hourly. Lots of different values for different countries, states, cities, markets, and for different time periods.

11
**The Structure of Economic Data - Notation**

Time series: Yt, t=1990, 1991, …, 2012 Cross-Sectional: Yi, i=1, 2, 3, …, 40 Panel Data: Yit, i and t defined as above. It is common to denote each observation by the letter t and the total number of observations by T for time series data, and to denote each observation by the letter i and the total number of observations by N for cross-sectional data.

12
**The Structure of Economic Data – Quantitative vs Qualitative**

The data may be quantitative and qualitative. Quantitative (e.g. GDP per capita, exchange rates, stock prices, unemployment rates) Qualitative (e.g. Day of the week, gender, level of education)

Similar presentations

OK

13 Introduction toTime-Series Analysis. What is in this Chapter? This chapter discusses –the basic time-series models: autoregressive (AR) and moving.

13 Introduction toTime-Series Analysis. What is in this Chapter? This chapter discusses –the basic time-series models: autoregressive (AR) and moving.

© 2018 SlidePlayer.com Inc.

All rights reserved.

To ensure the functioning of the site, we use **cookies**. We share information about your activities on the site with our partners and Google partners: social networks and companies engaged in advertising and web analytics. For more information, see the Privacy Policy and Google Privacy & Terms.
Your consent to our cookies if you continue to use this website.

Ads by Google

Ppt on supply chain management of nokia phones Ppt on water softening techniques to fall Ppt on environmental protection act 1986 Ppt on charge-coupled device images Ppt on electricity for class 10th physics Ppt on ufo and aliens on the moon Ppt on content addressable memory wiki Download ppt on indus valley civilization Ppt on motivational quotes Perspective view ppt on android