Term
| What does econometrics measure? |
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Definition
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Term
| Describe the 8 steps that make up the methodology of econometrics: |
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Definition
- State the hypothesis to test based on theory of interest (usually the hypothesis is constructed so that the researched hopes to disprove the statement).
- Collect the data
- Specify the model or mathematical representation of the theory
- Specify the econometric model of the theory this addresses specific properties of the relationship such as how the estimated coefficients might change from sample to sample; an error term is also added to the equation
- Estimate the parameters
- Test the specification of the model
- Test the hypothesis
- Use the model for forecasting
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Term
| Distinguish between the different types of data used for empirical analyis: |
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Definition
- Time series data - data over time
pairs observations of prices and quantity for a particular product across periods of time. The first pair of observations would represent the price and quantity for the first period, the second pair for the 2nd period, etc.
- Cross-sectional data - data from different areas using the same time period
represents pairs of price and quantity observations at a point in time but from different geographical regions
- Pooled data - set of cross sectional observations over several time periods. Panel data is a type of pooled data where the researcher looks at a unit of observations such as a family and records changes for each member of the family over time.
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Term
| What is most likely to be an 'all or nothing' variable that indicates a condition.... quantitative or qualitative? |
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Definition
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