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Introduction

  • John D. Levendis
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

Econometrics can be used to answer many practical questions in economics and finance:
  • Suppose you own a business. How might you use the previous 10 years’ worth of monthly sales data to predict next month’s sales?

  • You wish to test whether the “Permanent income hypothesis” holds. Can you see whether consumption spending is a relatively constant fraction of national income?

  • You are a financial researcher. You wish to determine whether gold prices lead stock prices, or vice versa. Is there a relationship between these variables? If so, can you use it to make money?

Answering each of these questions requires slightly different statistical apparatuses, yet they all fall under the umbrella of “time series econometrics.”

References

  1. Acemoglu, D., Johnson, S., & Robinson, J. A. (2000). The colonial origins of comparative development: An empirical investigation (Technical report), National Bureau of Economic Research.Google Scholar
  2. Azevedo, J. P. (2011). WBOPENDATA: Stata module to access world bank databases. Statistical Software Components S457234, Boston College Department of Economics.Google Scholar
  3. Dicle, M. F., & Levendis, J. (2011). Importing financial data. Stata Journal, 11(4), 620–626.CrossRefGoogle Scholar
  4. Drukker, D. M. (2006). Importing federal reserve economic data. Stata Journal, 6(3), 384–386.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • John D. Levendis
    • 1
  1. 1.Department of EconomicsLoyola University New OrleansNew OrleansUSA

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