Prof. Bryan Caplan

bcaplan@gmu.edu

http://www.gmu.edu/departments/economics/bcaplan

Econ 345

Fall, 1998

HW#6

[Note: Print the regression results (for #1), and any charts and graphs relevant to your answer (for #2).]

1.

    1. Go to http://www.stls.frb.org/fred/dataindx.html and download one time series variable of your choice.
    2. 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.
    3. Use two different specifications to test whether your time series follows a random walk.
    4. Discuss your results. Are they surprising?

2.

    1. Go to the Economic Freedom of the World study - the links to it are on the class homepage.
    2. 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?
    3. 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?
    4. Was there anything important about the country - to your knowledge - that numbers failed to capture?