econometric country project

I am having trouble with an extra credit project and it is important I do well. I am trying to create a project to predict if, after comparing the "Axis of Evil" (North Korea, Iran and Iraq) with the United States, to see what the differences are (year 2000 data). Then compare the United States with Israel and the UK--its closest allies. Once we see those correlations, compare them to China and Libya to predict if the USA will go to war with them (holding all data constant). I have flexibility with this topic. I have enclosed an Excel Spreadsheet (data) and two Word sheets (one is a table with dummy variables I have set up for questions using the data--my Excel wasn't working properly. ... click for more

Relationship

The gross income and tax paid by a cross-section of 30 companies in 1988 and 1989 is given in the file tax.xls (a) Use these data to estimate the relationship for each of the years 1988 and 1989. TAXt= àŸ1 + àŸ2 incomet + et (b) Give brief interpretations of the two estimates of àŸ2 (c) Give brief interpretations of the two estimates of àŸ1 (d) Find the average income and average tax for each year, and compare the average tax rate and marginal tax rate for each year.

Based on Econometric Analysis, Greene, Chapter 5 (4 problems)

Based on Econometric Analysis, Greene, Chapter 5 (4 problems) What if I want to show that biv is asymptotically unbiased? We get a hint: (see attached)

Household Expenditure Functions

Market research is often concerned with how consumers adjust their expenditure on various commodities as their level of income increases. In this example we focus on households that consist of two adults and no children, and we examine how a change in income changes expenditure on food and transportation. Observations on weekly expenditure for these two commodities, as well as weekly income (x), number of children (k) and number of adults (a), for 1000 households, appear in the file hhsurvey.xls Questions appear in the ms word document file.

Short Run and Long Run Coefficients and Error Correlation Models

Our teacher has gone through questions like these in class, but I am still unsure because I have had trouble understanding this topic, I now have to do a presentation to the class with refrence to economics, I just need to confirm I am on the right track: I am looking at the correlation between inflation and unemployment: IN = Inflation , UE = Unemployment The equation is outlined below, but comp can not show symbols so please look at pic in attachemnts for equation INt = a + ∑2j=1 bj x INt-j + ∑2 j=0 bj x UNt-j + ut The error terms are independent and identically distributed with a mean or o and variance sigma squared. Basically I need confirmation on the shor... click for more