ecometrics

Use the Dataset Growth.wf1 in “resources” — the file growth defines the variables.

1. Run the regression growth = α + βTrade + ε

In eviews: ls growth c trade

1. Does trade significantly (at the .05 level) impact growth?

1. What does the standard error of the regression mean?

1. What is your forecast for growth of a nation where trade =.5?

1. Run the regression:

LS GROWTH C TRADE RGDP60 SCHOOL

1. What does the F statistic from the regression show?

1. Test if the coefficients on RGDP60 and SCHOOL are jointly=0.

1.

Dependent Variable : GROWTH
Method: Least Squares
Date: 02/05/18 Time: 23:11
Sample: 1 65
Included observations: 65
Variable	C oefficient	Std. Error	t-Statistic	Prob.
C	0.640265	0.489977	1.306726	0.1961
TRADESHARE	2.306434	0.773485	2.981873	0.0041
R-squared	0.123680	Mean dependent var	1.942715
Adjusted R-squared	0.109770	S.D. dependent var	1.897120
S.E. of regression	1.789970	Akaike info criterion	4.032561
Sum squared resid	201.8516	Schwarz criterion	4.099465
Log likelihood	-129.0582	Hannan-Quinn criter.	4.058959
F-statistic	8.891564	Durbin-Watson stat	2.180373
Prob(F-statistic)	0.004070

2.

Dependent Variable: GROWTH

Method: Least Squares

Date: 02/05/18 Time: 23:12

Sample: 1 65

Included observations: 65

Variable

Coefficient

Std. Error

t-Statistic

Prob.  

C

-0.142705

0.549450

-0.259724

0.7960

TRADESHARE

1.842418

0.716842

2.570187

0.0126

RGDP60

-0.000391

0.000145

-2.703767

0.0089

YEARSSCHOOL

0.566717

0.141245

4.012302

0.0002

R-squared

0.317675

    Mean dependent var

1.942715

Adjusted R-squared

0.284118

    S.D. dependent var

1.897120

S.E. of regression

1.605149

    Akaike info criterion

3.843874

Sum squared resid

157.1668

    Schwarz criterion

3.977683

Log likelihood

-120.9259

    Hannan-Quinn criter.

3.896670

F-statistic

9.466736

    Durbin-Watson stat

2.031397

Prob(F-statistic)

0.000032