Prof. Bryan Caplan

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

Econ 345

Fall, 1998

HW#3

The workfile you downloaded for hw#2 contains all of the data you need for this assignment.

Comment on each of your results and print them. Is the coefficient positive or negative? Significant at the 5% level or not? What are your R^{2}'s?

- Use the Genr menu to create percent-change versions of Nominal GDP, Real GDP, and M2. Then try the following regressions:

- Percent change in Real GDP on percent change in Nominal GDP.
- Percent change in Nominal GDP on percent change in M2.
- Percent change in Real GDP on percent change in M2.

- Use the Genr menu to define lags of the percent-changes of Nominal GDP, Real GDP, and M2. Then try the following regressions:

- Percent change in Real GDP on percent change in Nominal GDP and lagged percent change in Nominal GDP.
- Percent change in Nominal GDP on percent change in M2 and lagged M2.
- Percent change in Real GDP on percent change in M2, lagged percent change in M2, percent change in Nominal GDP, and lagged percent change in Nominal GDP.