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ECO 4431: Analysis of Economic Data

Paul Beaumont Department of Economics Florida State University

Instructions for Project 1
Downloading and Plotting Economic Data

In this project you will: (1) download economic data from the internet into a spreadsheet, (2) import that data into EViews , (3) produce summary statistics and plots of the data, and (4) interpret your results. This project serves as the FSU Computer Competency Requirement for this class. You must earn a C- or better on this project in order to earn a C- or better in the class. If you do not earn at least a C- on this project you will have a chance to resubmit the project ONE time in an attempt to improve your grade. Please read the syllabus carefully for complete details. (1) Go to the Federal Reserve Bank of St. Louis FRED database and download the following two monthly data series: UNRATE: Current Civilian Unemployment Rate (Monthly) PERMIT1: Current New Private Housing Units Authorized by Building Permit - In Structures with 1 Unit (Monthly) You can register on FRED and create a Data List that will enable you to download both series on a single spreadsheet. (2) Edit the spreadsheet so that missing observations at the beginning and end of each series are eliminated. (3) Load the data into EViews. (4) Produce a histogram and stats for each data series. (5) Produce a plot with both series on the same plot with PERMIT1 on the left axis and UNRATE on the right axis with the date along the bottom axis. (6) Add shading to your plot to denote periods of economic recessions. The periods from the peak to the next trough should be shaded and the periods from the trough to the next peak should be unshaded. You can get the recession dates from the NBER web page listed in the COURSE LIBRARY. (You should already have a TEMPLATE graph to do this.) Remember that
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coincidental or lagging indicators for the business cycle? Has the nature of the lead/lag relationship changed in recent years? Based upon your graph. . Write a brief 2 to 3 page report that includes: (a) a title (b) the date (c) your name (d) a complete description of the data including definition. Save your document as a pdf (preferred) or a doc file with the file name “yourlastname-proj1. Add titles and axis labels to your graph and save the graph in your EViews work file by naming it.doc” and submit the file to me before midnight on the due date via the Blackboard Digital Dropbox. units. frequency. and seasonal adjustment (this is all on the FRED web page) (e) cut and paste the summary statistics for each series (f) cut and paste the graph of the series that you created (g) interpret your graph — Are the series leading.2 (7) (8) (9) (10) you will have to FREEZE the graph in order to add a TEMPLATE. what do you expect to happen the the economy in the next three months? (h) include a complete citation for your data including the web address where you downloaded it.pdf” or “yourlastname-proj1. data range. Late projects will be penalized at 10% per day.