You must have Credits on your Balance to download this sample

Masters

Essay

Miscellaneous

Pages 7 (1757 words)

Download 0

This paper is devoted to econometric analysis of data of certain French economic factors for the period 1955-1994. The economic factors are tabulated as annual aggregates and rates in either ordinary or logarithmic forms. They are - 1) Natural logarithm of real per capita consumption (LCF), 2) Natural logarithm of real per capita income (LYF), 3) Real interest rate (RF) and 4) Rate of unemployment (UF)…

Get more done in less time

Let us write a custom essay on your topic

“Econometric Analysis” with a personal 15% discount.

Order now
## Introduction

Its analysis has two principal purposes - to promote empirical content within particular economic theories and to subject such theories to potentially falsifying tests (Econometrics, Wikipedia, 2006). Taking the first, with the French data as example, it can be said that economic theory holds that consumption should be directly proportion to income while it should be inversely so to interest and unemployment rates. The available data should reflect this and thus provide empirical evidence of the theory's validity. The tests that the data will be subjected to will assist in this quest for empiric authenticity. Such tests should not only provide broad evidence of empiricism but should also assist in determining how much current variance there may be from theoretical reckoning and should thus provide reliable pointers as to why such variance is evident. It is, of course, incumbent upon theorists to interpret why there is variance, if evident after analysis, and this is done at the end of the paper.

To find empiric elements within the variables the first strategy adopted is to assume that a certain relation exists among the variables such that LCF (natural logarithm of real per capita consumption) is taken to be an endogenous variable series that is f ...

Download paper
Not exactly what you need?

### Related papers

Econometrics
The classical linear regression model is written such that the coefficients of the independent variables measure the sensitivities of the dependent variable on the independent variables. It is usually assumed that there is an error term which measures the unexplained variance of the dependent variable that is not accounted for by the independent variable. Therefore, only a proportion of the…

The evience suggests that PPP hold both in the short and long run
There is however some studies which focused on the short run basis of PPP. Chowdhry, Roll & Xia (2004) find that "relative PPP holds well in the short run in both single-country-pair OLS regressions and a pooled system regression" and that their evidence "for short-run relative PPP is unlikely to be driven by missing world factors or by real effects of inflation". Further, "our results complement…

Tax Rate in Thailand
Just about a year ago the price of international crude oil was about $130 per barrel, but things have come to such a pass now that the oil exporting countries headed by OPEC is worried about the falling prices. These days the prices have come down to about $30 per barrel. This implies better bargains for oil importing nations. Therefore the tax rates would've been higher during the period when…

Research paper on Homeland Security
The suddenness of the attacks on September 11, 2001, and the manner in which America was caught off guard, would shape our perception of the war on terror and frame America's response. Previous wars had unfolded methodically in the public's eye, such as the extended debate that preceded the Civil War. However, the War on Terror had no such incubation period to give the American public time to…

Econometric Analysis
Its analysis has two principal purposes - to promote empirical content within particular economic theories and to subject such theories to potentially falsifying tests (Econometrics, Wikipedia, 2006). Taking the first, with the French data as example, it can be said that economic theory holds that consumption should be directly proportion to income while it should be inversely so to interest and…

Corporate Failure Rates and the Impact of the 1986 Insolvency Act
Interest rates are important because they reflect the monetary policy manifestation. Increase in inflation rates also result in increase in failure rates. Lastly, the age of a business is important because the lesser the age of a business, the more chances are that it would not survive.…