Prof. Bryan Caplan
[Note: Print the regression results (for #1), and any charts and graphs relevant to your answer (for #2).]
- Go to http://www.stls.frb.org/fred/dataindx.html and download one time series variable of your choice.
- Load the series you download into Eviews. You will first need to go to the File heading to create a new worksheet. Then, go to the heading Procs, choose the Import option, and select the sub-option Read Text-Lotus-Excel.
- Use two different specifications to test whether your time series follows a random walk.
- Discuss your results. Are they surprising?
- Go to the Economic Freedom of the World study - the links to it are on the class homepage.
- Pick one country of your choice that the study discusses. Discuss its scores in each of the 4 main classes of economic freedom over the period for which data is available: is it a high or low-scoring country? Did it rise or decline over the 75-95 period?
- What were your country's economic growth rates in each 5-year period? Did it do better or worse than other countries with the same economic freedom score?
- Was there anything important about the country - to your knowledge - that numbers failed to capture?