Math/Physic/Economic/Statistic Problems
Q1. Define economic growth. Discuss how you measure economic growth. Obtain data on economic growth from WDI for your specific year. Produce a histogram of growth rates.Label it and provide a title for it. Discuss the distribution of growth rates.(5 marks)
Q2. Obtain data required to compute openness to trade from WDI. Produce a scatter plot of openness to trade (x-axis) against growth (y-axis). Based on visual inspection, discuss any pattern and outliers in the data that emerge. Identify the outliers and discuss the impact of outliers on the regression.(5 marks)
Q3. Present a table of summary statistics. This table should contain number of observations, average, standard deviation, minimum, and maximum for both variables.(5 marks)
Q4. Compute and present a correlation matrix. Discuss correlation between growth an2 openness to trade.(5 marks)
Q5. (1) Specify a regression model that explains how growth rates depend on openness to trade. Estimate the model, present results in a table and discuss your results.(10 marks)(2) Based on the regression results, what is the marginal effect of openness to trade on growth rates, and what is the elasticity of growth rates with respect to openness to trade?(10 marks)
Q6. In the model specified in Q5, are there any omitted variables that should also be included? If yes, please identify additional variable(s) that should also be included in the model in Q5, and briefly discuss the reason why the variable(s) should be included. Specify a new regression model which includes the variable(s) that you identified as omitted variable(s),estimate the new model, present the results in a table, and discuss your results. If no, please discuss your rationale.(15 marks)
Q7. Perform a statistical test to check whether the functional form in the model specified in Q6 is specified. Present your test results in a table, and discuss your results.(15marks)
Q8. (1) Perform a statistical test to check for heteroskedasticity in the model specified inQ6, present your results in a table and discuss your results.(15 marks)(2) Use a robust estimation method to correct for heteroskedasticity.
