ECON 3020

Spring 2013

Dr. Tufte

Homework 5

Due: at the start of class on Monday, March 27

1) Download nominal and real GDP from the Bureau of Economic Analysis website. Rename this spreadsheet something instructive (you know … including your last name, Homework 5, and ECON 3020). Of course, you can also just copy the data you already have in other spreadsheets.

2) Enter your T-number in the following blocks so that it ends in the last block on the right.

3) Write the value in the darker shaded cell on the far right in the empty box below:

1

9

3

4) Write the value in the lighter shaded cell on the far right in the empty box below:

2

0

0

5) Note that your entries for numbers 3 and 4 look like years. Write out the two years: ______________ to ________________. This is the sample of real GDP data that you will be working with for this homework (and other forthcoming homeworks). Note that it will be close to your neighbors and friends, but is unlikely to be exactly the same. This means that your results should be close enough to be generally comparable to your friends and neighbors, but not close enough that you could copy their results.

6) I am assuming that, to start out with, your years are in column A and your annual real GDP series is in column C. Copy the real GDP to column I. Take natural logs of that column and put them in column J. Label that column “Natural Logs of Annual Real GDP”. Copy your years to column K. Label that column “Deterministic Trend”.

7) Put a lag of the data in column J into column L. Label that column “Lagged Natural Logs of Annual Real GDP”.

8) Run a regression in which the Natural Logs of Annual Real GDP are the “Input Y Range” and both “Deterministic Trend” and “Lagged Natural Logs of Annual Real GDP” in the “Input X Range”.  Put the regression output into a new worksheet (with some sort of instructive name).

9) Clean up your new regression as directed in the Handbook.

10) For both regressions, create a fitted value and residual (as shown in class for the deterministic trend model). Instead of putting this with the regressions, put it next to your data in columns M through P. Label it clearly.

11) Print and turn in a) the first part of your data sheet, showing only columns I through P, and only the years from 1929 to 1950, and b) the two worksheets which contain your regressions. I want the one from Homework 4 for reference; you will not be graded on it again.