Tampa Bay Business Daily

Econometrics?

I have to do a research project this semester in Econometrics and I need help picking a topic. The ideas I had seem a bit too hard and I now would like to try and find an economic theory that can easily be tested or discredited using data. I have already read about.com's ideas about Okun's Law and the prime rate and consumption and would like to try something different than those. I am looking for a well-known theory that I can apply econometrics to easily. PLease help!

Public Comments

I recommend in place to look for a well known economic theory to work with non-quantitative variable in your econometrics model. all the econometrics model does not have to demonstrate a theory; a good result could be to obtain poor result and soon explain how the econometric model do not explain the indicated theory. A model which work with OLS regression are in http://www.imf.org/external/pubs/ft/wp/2008/wp0839.pdf Other complete work is http://www.imf.org/external/pubs/ft/wp/2008/wp0836.pdf Be sure too to obtain good quality data, filtered by the same criteria. the economics models in finance usually give good results in econometrics model and finance data usually is very serious; if you explore other fields in economics maybe the work will be multiplier. I recommend to use simple model; two independent variables; and be sure your protected for homocedastity or a bad definition of the model Damodar Gujarati's book offer good and very simple examples; I do not know if your teacher will accept too very simple works like the showed by Gujarati