Business cycle facts. Download the following aggregate United States data from the FRED database from 1947-2020,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Business cycle facts. Download the following aggregate United States data from the FRED database from 1947-2020, quarterly, if available. You can use the following Python API for FRED data. • Real Gross Domestic Product (GDPC1) • Personal Consumption Expenditures: Nondurable Goods (PCND) • Real Gross Private Domestic Investment (GPDICI) Nonfarm Business Sector: Hours of All Persons (HOANBS) • Nonfarm Business Sector: Real Compensation Per Hour (COMPRNFB) • Nonfarm Business Sector: Output Per Hour of All Persons (OPHNFB) Gross Domestic Product: Implicit Price Deflator (GDPDEF) Civilian Noninstitutional Population (CNP160V) [monthly series, convert into quar- terly] Unemployment rate (UNRATE) (a) Construct the following variables: • Y: Divide real GDP by population • C: Divide personal consumption expenditures by the price deflator and by the population I: Divide real investment by population • H: Divide hours of all persons by population • A: Use output per hour (b) Write a function filter_transform(h, transform type) as follows. This function, by default, logs the data, but provides the option of leaving the data as is. This function then runs the Hamilton regression filter for general h and p = 4 and supplies the residuals as output (the cycle). Run the function on each series at h = 8. Using lowercase to denote cyclic variables, these should be y, c, i, u, w, h, a. Note: you can efficiently apply the function on multiple series using list comprehensions in Python. (c) Plot each variable along with output Y (one graph for each pair of variables). This can also be automated if you wish. (d) Construct a table which has as columns the standard deviation of the variable, the ratio of its standard deviation with respect to output, the correlation with output, and the first-order autocorrelation (as in the lecture slides). This can also be implemented as a function of the cyclic data. (e) Using the table and the plots, explain what you believe are the main stylized facts of business cycles that models should explain. Business cycle facts. Download the following aggregate United States data from the FRED database from 1947-2020, quarterly, if available. You can use the following Python API for FRED data. • Real Gross Domestic Product (GDPC1) • Personal Consumption Expenditures: Nondurable Goods (PCND) • Real Gross Private Domestic Investment (GPDICI) Nonfarm Business Sector: Hours of All Persons (HOANBS) • Nonfarm Business Sector: Real Compensation Per Hour (COMPRNFB) • Nonfarm Business Sector: Output Per Hour of All Persons (OPHNFB) Gross Domestic Product: Implicit Price Deflator (GDPDEF) Civilian Noninstitutional Population (CNP160V) [monthly series, convert into quar- terly] Unemployment rate (UNRATE) (a) Construct the following variables: • Y: Divide real GDP by population • C: Divide personal consumption expenditures by the price deflator and by the population I: Divide real investment by population • H: Divide hours of all persons by population • A: Use output per hour (b) Write a function filter_transform(h, transform type) as follows. This function, by default, logs the data, but provides the option of leaving the data as is. This function then runs the Hamilton regression filter for general h and p = 4 and supplies the residuals as output (the cycle). Run the function on each series at h = 8. Using lowercase to denote cyclic variables, these should be y, c, i, u, w, h, a. Note: you can efficiently apply the function on multiple series using list comprehensions in Python. (c) Plot each variable along with output Y (one graph for each pair of variables). This can also be automated if you wish. (d) Construct a table which has as columns the standard deviation of the variable, the ratio of its standard deviation with respect to output, the correlation with output, and the first-order autocorrelation (as in the lecture slides). This can also be implemented as a function of the cyclic data. (e) Using the table and the plots, explain what you believe are the main stylized facts of business cycles that models should explain.
Expert Answer:
Answer rating: 100% (QA)
I can provide you with a general approach to tackle this task using Python and data analysis librari... View the full answer
Posted Date:
Students also viewed these economics questions
-
Real gross domestic product (GDP) rose in the fourth quarter, led by exports. Consumer spending also increased. Business investment in plant and equipment expanded for the fourth consecutive quarter....
-
In 2009, per capita real gross domestic product (GDP) in Croatia was $10,059.68. By 2010, it had increased to $10,257.71. At what rate did Croatia's economy grow in that time?
-
The following table shows real gross domestic product (GDP) for various countries in 2006 and 2016: Construct a display that best describes these data. GDP ($ trillion) Country 2006 2016 United...
-
Francine Frost graduated from State University with a degree in accounting five years ago, she was promoted to manager last week by the local CPA firm Ross & Denning, LLP. The firm has two...
-
Ruth Swazey, divisional controller and certified management accountant, was upset by a recent memo she received from the divisional manager, Paul Chesser. Ruth was scheduled to present the divisions...
-
Tidwell Corporation has 50,000 shares of $10 par value common stock outstanding. It declares a 10% stock dividend on December 1 when the market value per share is $16. The dividend shares are issued...
-
A toroid carries a current \(I\) and has \(n\) circular windings per unit length measured along the inside edge of the windings. The radius of each circular winding is \(R_{\text {winding }}\), and...
-
Calls to the 24-hour customer support line for Richman Financial Services occur randomly following a Poisson distribution with the following average rates during different hours of the day: The...
-
Exercise 1 Motion on a Ramp In this exercise you will roll a marble down a ramp and calculate its linear acceleration and velocity. You will then create graphs to illustrate the motion of the marble.
-
You are reviewing audit work papers containing a narrative description of the Tenney Corporations factory payroll sys-tem. A portion of the narrative is as follows: Factory employees punch time clock...
-
Assume that you were the finance director of Ben & Jerry's Homemade. Discuss how you would address each issue raised in the above case. Your report should include but is not limited to the following...
-
Are branded offers in social games ethical? Choose a side and debate this issue with a classmate. Then post your opinions and find out what your social graph thinks of this common practice.
-
How are brands using original digital video as a social entertainment tactic?
-
What role did Web 2.0 play in the development of social media?
-
What is an opinion leader? What sources of power might accrue to opinion leaders?
-
What are the disadvantages of initializing the components of a structure variable at the time of declaration?
-
Which one of the following is not true about the historical evolution of asset-based lending? Group of answer choices Asset-based lending has been an extremely important source of financing in nearly...
-
Describe a group you belong or have belonged discuss the stages of group development and suggest how to improve the group effectiveness by using the group development model.
-
A Consider \[\begin{cases}\dot{x}_{1}=-x_{1}\left|x_{1} ight|+a x_{2}-\frac{2}{3}+\sin t & x_{1}(0)=\frac{2}{3} \\ \dot{x}_{2}=-x_{1}-\frac{1}{2} x_{2}-1, & x_{2}(0)=1\end{cases}\] where \(a\) is a...
-
A first-order dynamic system is modeled as \[\dot{y}+3 y=f(t), y(0)=1\] Assuming the input \(f(t)\) is a step function with magnitude 0.8 , find \(y_{s s}\).
-
The pendulum system in Figure 8.35 consists of a uniform thin rod of length \(l\) and a concentrated mass \(m\) at its tip. The friction at the pivot causes the system to be damped. When the angular...
Study smarter with the SolutionInn App