Economics Assignments

Assignment No. 1

1. Please write a brief but complete answer to the following questions:

2. Discuss each of the following statements from the standpoints of equity and efficiency.

3. Classify each of the following statements as positive or normative.  Explain.

4. Classify the following topics as relating to microeconomics or macroeconomics.

 

5. STATA exercise:  After reading the paper by Gwartney and Haworth, ìEmployer Costs and Discrimination:  The Case of Baseballî use the file Dataset1.dta, to do the following. 

 


Assignment No. 2

1.     Using an Internet mapping page (an example is mapquest.com), create a map of your neighborhood and answer the following questions:

2.     ìThe Economic Report of the Presidentî contains statistical information about the economy as well as the Council of Economic Advisersí analysis of current policy issues.  Find a recent copy of this annual report at the library or visit http://w3.access.gpo.gov/eop/ and read a chapter about an issue that interests you.  Summarize the economic problem at hand and describe the councilís recommended policy. 

3.     Would you expect economists to disagree less about public policy as time goes on?  Why or why not?  Can their differences be completely eliminated?  Why or why not?

4.     Please write brief but complete answers.

5.     Why do most economists oppose trade restrictions?

6.     STATA exercises:


Assignment No. 3

1.     Please write brief but complete answers.

2.     During the 1990s, technological advance reduced the cost of computer chips.  How do you think this affected the market for computers?  For computer software?  For typewriters?

3.     STATA exercise:  To do this exercise you should have read the paper by Romer and Romer published in the AER.

4.     STATA exercise.  To do this exercise you should have read the article by Cumby and Mishkin in JIMF.

1.     Download the data set Int.xls or Int.dta.
2.     Find the ex post real interest rate series for the US. In other words, find:  eprrUS = iUS - πUS where iUS stands for the nominal interest rate in the US.  Once you have the series plot it, together with the inflation series, in a graph against time.
3.     Find the ex post real interest rate series for Germany.  In other words, find:  eprrG = iG - πG where iG stands for the nominal interest rate, πG stands for the inflation rate, eprrG for the ex post real interest rate.  Once you get the series plot it together with the German inflation series in a graph against time.
4.     Regress the US ex post interest rate (eprrUS ) on:
a.     The nominal interest rate (itUS)
b.     A time trend (t)
c.     The three lagged inflation variables:  Usinfl_1, Usinfl_2, Usinfl_3.  In other words, run the following regression using OLS:  eprrtUS = α + βitUS + δt + φ1πt-1US + φ2πt-2US + φ3πt-3US + εt.  Show the estimates and standard errors for each of the coefficients.
5.     Find the fitted values from the previous regression (part 4) and call the predicted values ìprrUSî.
6.     Regress German ex post real interest rates (eprrG) on prrUS and a constant, i.e., run the following regression:  eprrG = v + γ prrUS + ε.
7.     Test the null hypothesis that v=0 (from regression estimates in part 6)
8.     Test the null hypothesis that γ = 1 (from regression estimates in part 6)
9.     Notice that testing for v = 0 and γ = 1 is equivalent to test for the equalization of real rates in the US and Germany.  Would you conclude, from your results above, that they are equalized?