Applied Econometrics
Homework #1/ PNU/GSIS 2016/ Prof. YB,
* Using SAS/SPSS/Eviews/Stata do homework #1. Due date: Apr 7/2016
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options ls=80;
data korea;
input er fp p c g ca b gd m1 m2 y pop;
pc = c/pop; pg = g/pop; pb =b/pop; pgd =gd/pop; py=y/pop;
cards;
397.1 53.5 29.9 937.6 141.3 21 260.3 -7.0 730 1243 1127.0 34.1
398.2 58.1 33.5 1002.4 124.1 -392 363.6 -49.3 751 1315 1171.0 34.6
383.0 60.8 35.5 1129.1 151.1 -483 359.8 75.4 730 1386 1442.4 34.6
399.0 63.4 37.1 1220.5 181.3 -546 396.5 -12.5 885 1461 1394.6 34.6
421.4 64.9 38.1 1351.1 285.4 -606 443.1 -131.9 945 1489 2739.1 34.6
484.0 65.2 40.8 1403.0 184.8 -851 611.5 -160.1 915 1649 1529.2 35.2
484.0 65.7 44.4 1540.2 250.6 -718 604.7 37.6 928 1772 1933.1 35.2
484.0 66.6 47.0 1657.4 243.2 -79 652.5 50.5 1072 1875 1928.8 35.2
484.0 67.4 48.5 1823.6 341.6 -240 706.9 -129.6 1181 1935 2116.4 35.2
484.0 68.6 49.6 1801.5 306.4 -373 762.7 97.9 1214 2089 2092.4 35.8
484.0 70.4 51.3 1889.0 353.1 -132 773.1 34.5 1258 2260 2627.1 35.8
484.0 71.7 52.3 2017.2 376.0 -9 798.3 131.7 1335 2400 2586.3 35.8
484.0 72.7 53.5 2239.8 452.1 207 939.4 -256.2 1544 2588 4837.6 35.8
484.0 74.3 55.1 2156.0 400.2 9 926.5 33.0 1617 2775 2732.6 36.4
484.0 75.7 56.7 2337.2 479.2 -245 892.1 45.8 1735 2997 3400.3 36.4
484.0 76.1 58.6 2492.1 473.3 172 908.8 54.5 2000 3342 3570.4 36.4
484.0 76.7 59.1 2963.8 486.6 76 1124.4 -90.7 2172 3582 6079.4 36.4
484.0 78.0 62.4 2718.6 538.3 -34 1218.4 -103.5 2239 3690 3690.0 36.9
484.0 79.4 64.2 3156.2 627.8 -160 1190.3 100.6 2293 4244 4781.0 36.9
484.0 80.2 67.1 3362.4 635.4 -183 1095.3 157.3 2353 4710 4974.5 36.9
484.0 81.4 69.0 3933.9 635.5 -710 1358.3 -101.4 2713 5037 7804.5 36.9
484.0 83.9 71.9 3536.4 726.1 -953 1353.9 -75.2 2663 5435 4881.0 37.5
484.0 86.8 77.2 4043.3 743.7 -1326 1326.3 245.1 2538 5772 6125.3 37.5
484.0 89.6 79.4 4241.3 740.0 -813 1316.5 197.7 3009 5982 6275.5 37.5
484.0 92.4 82.2 4927.7 784.4 -1059 1228.2 -196.6 3274 6603 9684.0 37.5
571.0 96.8 90.5 4552.1 969.4 -1516 1293.5 -101.6 3200 7077 6120.7 38.1
594.0 99.1 97.5 5064.6 978.7 -1379 1268.5 86.6 2960 7702 7324.2 38.1
613.3 101.1 102.2 5385.6 1074.0 -1115 1320.5 60.6 3487 7951 7636.7 38.1
652.1 103.0 109.8 6313.4 1091.5 -1311 1613.6 -548.2 3807 8727 10751.3 38.1
667.1 105.4 114.2 5772.2 1262.7 -1118 1757.0 -308.2 3835 9188 7504.1 38.7
680.9 108.2 119.4 6253.3 1213.7 -1331 1893.5 -101.5 3712 9687 8908.8 38.7
685.8 110.1 125.3 6795.3 1290.4 -875 1795.8 133.1 3286 10979 9367.8 38.7
690.1 111.1 126.1 7574.2 1367.0 -1322 2387.7 -709.1 3982 11689 13533.0 38.7
710.0 112.9 127.6 7155.0 1500.0 -305 2350.7 -182.6 3943 12327 9058.1 39.3
728.1 114.0 129.7 7546.0 1403.0 -417 2348.2 32.4 4213 13075 10033.6 39.3
741.6 115.2 131.4 7966.0 1600.0 -626 2397.7 118.3 5553 13460 10766.1 39.3
744.6 115.9 131.6 8670.0 1919.0 -1302 3040.7 -625.2 5799 14105 14731.0 39.3
753.4 116.4 134.1 7376.3 1555.0 -1208 3152.7 -40.6 5626 14556 10248.7 39.9
769.5 117.3 134.5 7726.8 1428.3 -443 3124.9 -19.1 5691 15282 11380.9 39.9
785.2 118.8 134.7 8113.1 1456.0 523 3205.1 317.3 6288 15691 12648.0 39.9
794.7 120.0 134.7 8645.2 1634.5 -478 3060.6 -115.6 6783 16155 15734.6 39.9
795.7 121.9 136.7 8270.8 1028.1 -670 3109.7 77.8 6611 16410 11646.8 40.5
798.1 123.2 137.4 8464.1 1386.1 -475 3099.7 454.1 6142 15766 13264.5 40.5
810.5 123.8 137.9 8818.6 1553.4 -464 3099.2 379.7 6630 17129 14163.7 40.5
819.4 124.4 138.3 9375.8 1792.4 237 3113.8 -573.2 6821 17885 17451.7 40.5
838.7 125.4 139.5 8435.4 140.51 -647 3100.4 177.1 6527 18368 11820.8 40.8
867.0 126.0 140.5 8739.7 1336.5 -385 3010.4 531.3 6017 19701 13504.8 40.8
882.9 125.4 141.4 9208.0 1397.1 268 2860.1 260.5 6894 20602 14418.2 40.8
891.3 125.1 142.4 9840.0 1678.9 -123 2909.2 -774.9 7588 21007 18438.2 40.8
887.0 123.7 143.6 8998.2 1484.6 -438 2791.5 336.3 7170 22000 13126.2 41.1
887.0 121.4 144.0 9315.7 1492.7 889 2756.8 544.0 6924 23563 15200.0 41.1
882.1 120.4 144.8 9846.8 1638.7 2023 2718.0 437.6 7577 24314 16357.9 41.1
869.5 122.2 144.5 10488.0 1954.2 2143 2917.0 -981.0 8809 25024 20451.5 41.1
run;
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Question 1 . Obtain the correlations of between C and m1, g, ca, gd, respectively.
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[SAS Program]
proc corr data=korea pearson ;
var m1 g ca gd; with C; run;
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Question 2. Estimate the basic aggregate consumption function model:
(1) C t = a + b 1 Y t + b 2 B t +b 3 GD t + ε t , ( ε t -IID(0, σ 2 ))
1. Give estimated Korean (dc/dY), and a 95% confidence interval of b1 using
t-distribution.
2. Test the Null hypothesis "Income does not affect Consumptin in Korea" using a two- tailed t-test at 5% significance level.
3. Test the Null hypothesis " MPC=1" against MPC(1 using t-statistic at 5% significance level.
4. Test the Null hypothesis "Government debt does not affect Consumption in Korea" using a two- tailed t-test at 5% significance level.
5. Explain the economic implication of the result above(4).
6. Test the Null hypothesis " b1 = b2 " by using t-statistic at 5% significance level).
7. Test the Null hypothesis "Government deficit does not affect Consumption in Korea" using a two- tailed t-test at 5% significance level.
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[SAS Program]
proc Reg;
model c = y b gd/ CLI;
test y = 0; run; test y = 1; run; test y=b; run;
test b = 0; run;
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Question 3. Now if you regress the following consumption model in per capita consumption model , then estimate it and compare it with the results of aggregate basic consumption function model:
(2) (C/pop) t = d + d 1 (Y/pop) t + d 2 (b/pop) t +d 3 (GD/pop) t + ε t ,
( ε t -IID(0, σ 2 ))
1. Give estimated Korean (dc/dY), and a 95% confidence interval of d1 using
t-distribution.
2. Test the Null hypothesis " The per capit Income does not affect per capit Consumptin in Korea" using a two- tailed t-test at 5% significance level.
3. Test the Null hypothesis "The per capit Government debt does not affect per capit Consumption in Korea" using a two- tailed t-test at 5% significance level.
4. Explain the economic implication of the result above(4).
5. Test the Null hypothesis "Government deficit does not affect Consumption in Korea" using a two- tailed t-test at 5% significance level.
6. If you get the different results from (1) and (2), then interpret its economic implication.
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[SAS Program]
proc Reg;
model pc = py pb pgd/ CLI;
test py = 0; run; test pb=0; run; test pgd=0; run;
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[Essence of SAS(window version)]
1. to start SAS: Window: SAS icon click
2. to end SAS: Pull Down Menu : File click, Exit
3. Key Function:
*run(on menu):submit
4. Critical command:
1) inc(lude) 'filename'; to recall the saved file(or File-Open -read file Menu)
2) file 'filename': to save what you want and path(C: or A:)
3) file 'prn' file 'lpt1';
5. If use HWP to edit and print(in Text), it will be better!
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