Economics 304: Intermediate Macroeconomics
Fall 2007
Reed College -- Professor Jeffrey Parker

Homework #7
Problems Due: 9am, Friday, October 26
Empirical Exercises Due: 4pm, Monday, October 29

Problems from Blanchard: Chapter 13: Problems 2, 4, 7, 8; Chapter 14: Problems 2, 5, 7.

Empirical Exercise: This exercise uses the statistical software package Stata to analyze some questions about economic growth. You may either work individually or you may work on this exercise (but not the Blanchard problems) with a partner of your choosing and submit a single write-up together. In this project, you will use multiple regression to estimate the effect of several variables on economic growth. For a brief introduction to regression analysis in the context of growth, see Section C of Chapter 5 of the instructor's Econ 314 coursebook. Regression analysis is also introduced in Blanchard's Appendix 3 at the end of the book.

The exercise uses a Stata data set Proj7.dta to investigate convergence of growth rates among various groups of countries. The details of the empirical exercise are in a pdf document linked here. Your report should be in the form of a Word file that is sent to me as an email attachment no later than 4pm, Monday, October 29. I encourage you to copy and paste your Stata results into your Word file. This makes it much easier for me to track down any discrepancies between your results and mine.