Economics Program ECON 312: INTRODUCTION TO ECONOMETRIC

Economics Program ECON 312: INTRODUCTION TO ECONOMETRICS FALL 2011 Marks: 10 Due : October 20 2011 (in class) The following data relates to annual data for the U.S. on unemployment and inflation rates and wage growth. Conduct an econometric investigations of determinants of wage growth in United States for period 1959 to 1995 (see equation below) Write a research report (based on the format prescribed) year unemp cpi infl wggr 1959 5.2 29.1 0.69 4.9 1960 5.4 29.6 1.72 2.4 1961 6.4 29.9 1.01 2.4 1962 5.2 30.2 1 4 1963 5.7 30.6 1.32 3 1964 5.2 31 1.31 3.2 1965 4.5 31.5 1.61 4.5 1966 3.8 32.4 2.86 3.5 1967 3.8 33.4 3.09 3.1 1968 3.6 34.8 4.19 5.8 1969 3.5 36.7 5.46 6.4 1970 4.9 38.8 5.72 4.6 1971 5.9 40.5 4.38 6.2 1972 5.6 41.8 3.21 7.5 1973 4.9 44.4 6.22 6.2 1974 5.6 49.3 11.04 6.4 1975 8.5 53.8 9.13 5.7 1976 7.7 56.9 5.76 7.3 1977 7.1 60.6 6.5 7.7 1978 6.1 65.2 7.59 7.8 1979 5.8 72.6 11.35 8
1980 7.1 82.4 13.5 6.9 1981 7.6 90.9 10.32 8.5 1982 9.7 96.5 6.16 4.7 1983 9.6 99.6 3.21 5 1984 7.5 103.9 4.32 4.3 1985 7.2 107.6 3.56 2.1 1986 7 109.6 1.86 1.9 1987 6.2 113.6 3.65 2.5 1988 5.5 118.3 4.14 3 1989 5.3 124 4.82 3.8 1990 5.5 130.7 5.4 3.3 1991 6.7 136.2 4.21 2.5 1992 7.4 140.3 3.01 2.7 1993 6.8 144.5 2.99 2.8 1994 6.1 148.2 2.56 3.4 1995 5.6 152.4 2.83 2.4 Source: 1996 Economic Report of the President. year = 1959-95 37 observations Annual data for the U.S. on unemployment and inflation rates and wage growth. unemp = Civilian unemployment rate (%) Range 3.5 -9.7. cpi = Consumer price index (1982-84 = 100) Range 29.1 -152.4. infl = Percent change in CPI (inflation rate) calculated as 100*[CPI(t) -CPI(t-1)]/CPI(t-1) Range 0.69 -13.5. wggr = Percent change in average weekly earnings in current dollars Range 1.9 -8.5.
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