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Lab Eight Econ 240C. Per Se Legislation Introduced in Great Britain in October 1967 Before driving dangerously while intoxicated led to a conviction only.

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Presentation on theme: "Lab Eight Econ 240C. Per Se Legislation Introduced in Great Britain in October 1967 Before driving dangerously while intoxicated led to a conviction only."— Presentation transcript:

1 Lab Eight Econ 240C

2 Per Se Legislation Introduced in Great Britain in October 1967 Before driving dangerously while intoxicated led to a conviction only if you were found guilty in court After October 1967, if your blood alcohol content, BAC, was 0.08 or greater you were per se guilty

3 Capturing an event with a step function No visual impact

4 Two Approaches to Seasonal Data Regression of kill(t) = a –b*step(1967.10) + seasonal dummies + e(t)

5 Regression with Seasonal dummies

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7 Actual, fitted, residual

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13 The Alternative Approach Box Jenkins –Seasonal difference instead of seasonal dummies Model: Kill(t) c ar(1) ar(2) ar(3) step (1-Z 12 ) Kill(t) c ar(1) ar(2) (1-Z 12 ) step(1967.10) Sdkill(t) c ar(1) ar(2) sdstep(1967.10)

14 Seasonal difference

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19 Residual is White Noise


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