In this assignment you need to use Gretl software program, if you don't know how to use it you can't solve this homework. Moreover, you need to know how to deal with econometrics in order to finish this task. You have to write10 pages max as it written on the uploaded file under name professor instructions. The second file is my work where you can find the data set websites to run the regression on gretl.
After you read the instructions download the Program to do the regression.
Here are the links for gretl.
For Mac users:
https://gretl.sourceforge.net/osx.html
For PC users:
https://gretl.sourceforge.net/win32/
Assignment: Average vacation spending in the World
The topic will be measuring how much you spend on average in dollars while you are in vacation. It allows you to predict on average of how much people are willing to spend for their vacation based on their cost of living, GDP per capita, international tourism and expenditure. However, crime rates could play a vital role in how much people are willing to spend on their vacations. For instance, individuals planning a vacation in dangerous places may change their destination to somewhere else which may cause them to pay more for their trip.
1. What is the dependent variable?
How much you spend for a vacation in U.S dollars.
2. Potentially, what are the independent variables?
• Cost of living.
• Crime rates in % from all around the world.
• GDP per capita in U.S dollars.
• International tourism and expenditure in U.S dollars.
3. Where (specifically) will the data come from and what is the approximate sample size?
https://data.worldbank.org/indicator/ST.INT.XPND.CD - International tourism expenditures dependent variable.
https://www.numbeo.com/crime/rankings_by_country.jsp?title=2012-Q1 - Crime Rate.
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD- GDP per capita
https://www.numbeo.com/cost-of-living/rankings.jsp - Cost of living
https://data.worldbank.org/topic/climate-change - Climate Change
4. Will it be a time-series regression, a cross-section, or both?
My proposal will be using cross section data. The independent variables that will be used as cross section data are: Cost of living, GDP per capita, international tourism expenditure and crime rates on average in the U.S in the last ten years.
Additional Information for Econ 409 Paper
From syllabus:
The project consists of designing, estimating, and analyzing a regression model. The following must be submitted to fulfill the project requirement:
1. A paper, 10 pages maximum, not including the appendix. (Do not single-space.)
2. An appendix, containing computer printouts of all results reported in the paper and the web page addresses where the data can be found. If your data are not from the web, you must copy at least a portion of the original data source.
3. All data used in the project, so that your results can be verified. (Send me the data in a gretl file by email.)
When submitted, the paper and appendix should be flat, not in a three-ring binder. The paper, appendix, and email with your data.
Additional information:
Your paper should contain:
1. Information about where the data come from.
2. Include a table of descriptive statistics. (Mean, minimum, maximum, standard deviation of each variable.)
3. A literature review of relevant work that concerns your topic. You don't have to mention every paper that covers your topic but the ones you think are the most important.
4. Theory: Why did you include the Xs that you did? (It may have something to do with the literature review, if so, mention that.)
5. What are your initial results?
6. Test for possible violations of OLS assumptions.
7. How did you address any OLS problems?
8. What other models did you try?
9. What are your "final" results? (You can have more than one set of "final" results.)
10. Have a nontechnical conclusion of what you learned about your topic from the paper.
11. In general, make sure you include all the work you did so you get credit for it (different models or tests, etc.)
All tables, regression printouts, etc. should be in the appendix, not the regular text of the paper, and should be referred to with page numbers such as A-1, A-2,....