Economics Stata |Get Solution

Assessment Instructions   MODELLING AND FORECASTING CONSUMERS’ EXPENDITURE IN THE UK   This assignment gives you a chance to apply the econometric theory you have learned in Introductory Econometrics to the challenging task of modelling and forecasting consumers’ expenditure.   Section 1 (10 marks) Using Stata and the data file Cons 1976-2019.xlsx, estimate the following initial model for the subperiod 1976–2016:                                          Ct = ? + ?1Yt + ?2Ht + ?3Ct-1 + ?t                                                      (1)   where  Ct is households’ real final consumption expenditure (£ million) in year t Yt is households’ real disposable income (£ million) in year t             Ht is the Nationwide real house price index in quarter 2 of year t (£ per house, 2019Q2 prices) ?t is a random error term with an expected value of zero in year t Using your log, paste in your initial results from Stata, along with a correlation matrix and summary table with means, standard deviations, etc. Section 2 (35 marks) Offer a brief rationale for the inclusion of the explanatory variables in model (1).  Comment on your findings, referring particularly to the signs, values and statistical significance of the estimated coefficients.  Be sure to explain how to interpret the values of the regression coefficients.  How satisfactory is your initial model?  You should play close attention to any problems of serial correlation, multicollinearity and heteroscedasticity, as well as to possible specification errors.  Illustrate your answer with appropriate graphic output from Stata.   Section 3 (35 marks) Now consider how you might refine your initial model.  You should present the results for four models in a summary table (including your initial one in the first column) and explain how and why you refined your initial model.  You should follow the ‘general-to-specific’ (g-to-s) modelling methodology. You can use the Cons 1976-2019.xlsx data file as a source of data on additional variables.  For consistency, all models must be fitted to data for 1976–2016.  In your summary table, show standard errors in brackets beneath the regression coefficients, followed by t ratios in bold type and then p values.  For each model, report R2, , D.W. and ?2 test statistics for serial correlation and heteroscedasticity (along with p values). Section 4 (10 marks) Using your preferred model, forecast consumers’ expenditure from 2017 to 2019.  How accurate are the forecasts?  Provide a plot of actual and fitted values of Ct.  Try to account for any discrepancies between observed and forecasted expenditure. Section 5 (10 marks) Outline what improvements you think could be made to your preferred model if you had more time to devote to the modelling of consumers’ expenditure in the UK.   Notes of guidance   To maximize your mark, you should play close attention to the presentation of your work and to how it is written.  Use 12 point font, preferably Times New Roman.  Clarity, accuracy and good presentation will be rewarded.  Make good use of tables and graphs.  Check your work carefully to eliminate any grammatical, spelling and other errors.  You need to demonstrate that you have read and understood relevant course materials.  Make good use of your lecture and tutorial notes.  All quotations must be properly referenced, including those from lecture slides and handouts (reference these as L1, L4, H4, etc.).  Do not exceed 1350 words (exclusive of definitions, equations, tables, references, etc.).  Finally, ensure that you carefully read the following warning.

Don't use plagiarized sources. Get Your Custom Essay on
Economics Stata |Get Solution
Get a 15% discount on this Paper
Order Essay
Quality Guaranteed

With us, you are either satisfied 100% or you get your money back-No monkey business

Check Prices
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know that being a student these days is hard. Because of this, our prices are some of the lowest on the market.

Instead, we offer perks, discounts, and free services to enhance your experience.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Get personalized services with My Paper Support
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Customer 452813, June 25th, 2022
The paper is well written and professional. I highly recommend
Customer 452485, August 22nd, 2021
Criminal Justice
Thank you for the great paper. I like how the writer structured it.
Customer 452627, October 2nd, 2021
Human Resources Management (HRM)
Thanks for your assistance and promptness.
Customer 452701, November 1st, 2022
Always perfect!!! Don is the best!
Customer 452453, July 27th, 2021
Customer 452813, June 28th, 2022
Customer 452813, September 20th, 2022
Social Work and Human Services
The paper is impressive. Very professional and per the instructions
Customer 452533, May 24th, 2021
Writer did an excellent job! Thank you.
Customer 452693, January 14th, 2022
Social Work and Human Services
Awesome Work!
Customer 452587, October 20th, 2021
Customer 452813, July 9th, 2022
Customer 452813, June 19th, 2022
Enjoy affordable prices and lifetime discounts
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Order Now Order in Chat

SAVE BIG FOR FINALS. Order your essay today and save 20% with the discount code SPECIAL20