Assignment Requirements
Project in Econometrics The main objective of this project is to apply the econometric methods that you have acquired from the course in order to demonstrate that you can create a reliable and useful model for capturing the potential relationship between variables of interest. This Select two or more than two·could be achieved as the following: variables that you are interested in and collect the data. Describe each variable and explain what the expected relationship between the variables is (i.e. what is your theory). Provide information about your sample period, data frequency and data source. Determine your dependent variable and motivate why. Make a graphical illustration of each Estimate the·variable and provide descriptive statistics for each. regression equation. Conduct diagnostic tests (i.e. tests for no misspecification, no autocorrelation (if time series data is used), homoscedasticity and normality). If any desirable assumption for a good Present the estimations·model is not fulfilled, try to find a remedy. of the selected model and explain what your estimation results imply.
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