10 Jul Perform Data Analysis in either Excel on Consumption Function data
Question Description
1. Demonstrate your understanding of the consumption function’s role in macroeconomic theory.
2. Demonstrate your ability to perform data (regression) analysis in either Excel.
3. Demonstrate your ability to interpret regression results.
4. Demonstrate your ability to tie empirical results to macroeconomic theory.
Specific Steps: 1. Download consumption function dataset (Dataset-CF.xls) and notes on variables in the dataset from BlackBoard.
2. Review data set notes on variable in the consumption function dataset to familiarize yourself with the variables from the Notes – CF Dataset.PDF.
3. Open dataset in Excel.
4. Review (if necessary) the theoretical relationship between variables in the consumption function dataset.
5. Develop a priori hypothesis regarding the coefficients for the individual betas for the variables in your regression.
Factors to consider when performing assignment:
1. Interest rate (What type of interest rate is this?)
2. Units of variables used in the regression.
Deliverables:
1. A brief description of the consumption function, and its significance to the study of economics.
2. E-mail your expected (a priori) theoretical relationship for the variables (betas) you will use in your regressions.
3. Output of regression analysis (either in or Excel).
4. Interpretation of results, with a discussion of how well your results related to the testable hypothesis (a priori assumptions) you developed.
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