Build an econometric model between government and household

Reference no: EM133300662

Problem Statement: Your task is to build and estimate an econometric model that might be used to estimate the relationship between government spending and household consumption. Make sure that you understand what you are going to estimate, that you include other relevant explanatory variables on top of government expenditures, and that you interpret your estimates accordingly. In case you do not trust your estimates, write why. The purpose of this assignment is to practice working with panel data. While the recent literature uses panel-VAR (vector autocorrelation) approach to model the effects of government spending (or, in general, the effects of fiscal policy), let us experiment here with simple panel data methods.

Question: Estimate your model using one or several approaches of your choice. Report results in a comprehensive table. If you report more than one set of results (from more than one model and/or more than one estimation technique), then comment which of them is the most reliable and why.

Comment on your estimates. Do you find them intuitive? Is there something you would do differently if you had more time and/or better data? Why?

Reference no: EM133300662

Questions Cloud

How is empirical information for public consumption applied : How is empirical (data driven) information for public consumption applied?What are the limitations to the news report?

Chronic obstructive pulmonary disease : A 79-year-old woman was admitted with an acute exacerbation of both Congestive Heart Failure (CHF) and Chronic Obstructive Pulmonary Disease

Explain what consequential loss programme deals with : Explain what retention funding is and the reason why a risk manager might implement retention funding.Explain what consequential loss programme deals with

Concept of strategic information systems : Provide two examples of firms that have been able to create value using information systems. Define the concept of strategic information systems

Build an econometric model between government and household : Estimate your model using one or several approaches of your choice. Report results in a comprehensive table. If you report more than one set of results

Describe database dbms and sql : Describe "database," "DBMS," and "SQL." Then, discuss how you will design a campus safety and security system using the database concepts

Context of java networking : What are server sockets (in the context of Java networking)? Also, provide a short code example of your own choice to illustrate your description.

Why government spending might affect household consumption : Why government spending might affect household consumption? Is this relationship expected to be linear? Is this relationship expected to be immediate?

Problems associated with centralised knowledge repositories : Describe some of the problems associated with centralised knowledge repositories that more social approaches and technologies aim to address.

User Account

All Pages