ECONOMETRICS

Students: Professor:
Moraru Diana Prada Elena
Nicolae George-Alex
Popa Diana-Maria
Pintilie Adrian

Bucharest
2022-2023
Introduction

•The dataset that we chose analyses the impact of the number of libraries, employees, students and readers on
the average number of books for all the counties in Romania. The dataset contains statistics from Romania's
National Institute of Statistics, INSSE.
•Our purpose is to determine whether there is a direct relationship between the dependent variable, which is the
average number of books, and all the other variables. We used a dummy variable as well, variable which will
take the value 0 when the county has less than 150 libraries and value 1 when there are more than 150 libraries.
•The chosen dataset describes the situation of the counties recorded in the year 2021, the most recent year with
available data. Our expectation is that the statistics will show an increase of the number of libraries when there
is an increase in the number of books per county. We also expect an increase in the number of readers when
there is a rise in the number of books.
Literature review
•Research in this area has shown that the presence of libraries in a community can have a positive
impact on the number of books available. Studies have found that when the number of libraries
increases, there is also an increase in the number of books per capita, suggesting a direct
relationship between the two variables.
•Additionally, research has shown that a higher number of library employees and students in a
county are positively correlated with the number of books available. This may be due to library
employees and students being more likely to use and promote library resources, leading to a
greater demand for books.
•Similar research also pointed out that the number of readers is also correlated with the number of
books available, as a higher number of readers may lead to increased demand for library
resources.
•The use of a dummy variable in this study, which separates counties with less than 150 libraries
from those with more than 150 libraries, is a commonly used method in statistical analysis. This
can provide a useful way of comparing counties with vastly different levels of library resources.
Analyzed variables:

•Y- endogenous variable

•X- exogenous variable
 Y : the average number of books in Romania
 X1: the total number of libraries
 X2: the total number of employees
 X3: the total number of students
 X4: the total number of readers
 X5(dummy variable): flags if the number of libraries in a county is
higher than 150.
The sample is composed of 42 units, the counties in Romania, including the Bucharest Municipality.
Variable description:

The dependent variable in our project is the average number of books in Romania. The source of the data is TEMPO
and the information has been extracted from 2021 for all of the 43 counties in Romania, the Bucharest Municipality being
included.
The independent variables(X):
•X1 is represented by the total number of libraries. The unit of measurement for this variable is number of units. A higher
average number of books is expected as an increase in the number of libraries.
•X2 is represented by the total number of employees. The unit of measurement for this variable is number of people. A
higher average number of books is expected as a decrease in the number of employees.
•X3 is represented by the total number of students. The unit of measurement for this variable is number of people. A higher
average number of books is expected as an increase in the number of students.
•X4 is represented by the total number of readers. The unit of measurement for this variable is number of people. A higher
average number of books is expected as an increase in the number of readers.
•The X5 variable, which is also the dummy variable chosen for our research represents an indicator for targeting the counties
in which there are over 150 libraries in total.
We have inserted screenshots with the used R functions and the results obtained.

Median
Mean

Standard deviation