Brazil Consumption-Economics

Brazil Consumption-Economics

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Suppose we want to study the behavior of personal consumption expenditure in a country over says 15 years. As a starting point begin with a simple equation as follows:Yt = β1 + β2 X2t + β3 X3t WhereY = personal consumption expenditureX2 = personal disposable [after-tax] incomeX3 = time measured in yearsThis assignment assesses your understanding and skills in the application of econometric methods commonly used in economics. You are required to use a computer package to analyze personal consumption expenditure in a country of your choice in consultation with your lecturer and to make recommendations in the form of a report. The assessment covers all the course material in term one.

Some guidelines1. The report should be produced in word [Arial, pt 11/12; double-spaced] with two paper being submitted. Place your computer output in an Appendix at the end of the report. It may be appropriate to cut and paste some final results into the main body of the text, but this should be kept to a reasonably small quantity.2. The appendix should be clearly structured and labeled and you, must make proper and full reference to that appendix material in the main body of your report.3. Marks will be allocated on the basis of clear presentation of results and a lucid explanation of these obtained results. Some marks will be allocated simply for obtaining the correct regression/testing results but a high weighting will be given in the allocation of marks to evidence that you:• understand the techniques employed;• can justify the techniques you have used and appraise their strengths and weaknesses (where appropriate);• can communicate results clearly and concisely to the reader.4. When conducting a hypothesis test you must explain the null hypothesis that is being examined and the alternative hypothesis. Presenting such results in Tables may be very useful and can substantially help your presentation. Review journal articles [e.g. Applied Economics Letters] to identify common practice used in data presentation.

Pre-Written Pages: 9


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