📘 econometrics

1. **Problem Statement:** We have data for $C_t$ and $Y_t$ and want to estimate the parameters $\beta_1$ and $\beta_2$ in the linear regression model:

1. **Stating the problem:** We want to understand the objectives of econometric estimation and explain how to estimate the regression model $$Y_i = \beta_1 + \beta_2 X_i + \mu_i$$

1. **Problem Statement:** We want to estimate the relationship between savings ($S$) and investment ($I$) using the given data.

1. **Problem Statement:** We want to estimate the relationship between savings ($S$) and investment ($I$) using the given data.

1. **Problem C2.1 (Data file: 401K.dta):** (i) Find the average participation rate ($\overline{prate}$) and average match rate ($\overline{mrate}$).

1. The problem presents data on standardized scores and gender, followed by several econometric/statistical expressions, including regression output and moment conditions. 2. The r

1. We are given the theoretical model: $$\text{Inflation}_t = \beta_0 + \beta_1 \text{Interest\_Rate}_t + u_t$$ where both variables are in percentage points. We need to find formu