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econometrics: Consumer Expenditure Functions [STATA software]

econometrics: Consumer Expenditure Functions [STATA software]
Briefing: Data for the Consumer Expenditure Survey is collected for the Bureau of Labor Statistics by the U.S. Census Bureau. The Consumer Expenditure Survey is important because it is the only Federal survey that provides information on the complete range of consumers’ expenditures and incomes, as well as the characteristics of those consumers.
It is used by economic policymakers examining the impact of policy changes on economic groups, by the Census Bureau as the source of thresholds for the Supplemental Poverty Measure, by businesses and academic researchers studying consumers’ spending habits and trends, by other Federal agencies, and, perhaps most importantly, to regularly revise the Consumer Price Index market basket of goods and services and their relative importance.
The coursework should comprise a maximum of 2000 words (excluding tables and references). There is no 10% margin available on the word count. The word count MUST be included on the coursework.
Assignment details:
Using the Consumer Expenditure Survey (CES) dataset (available in STATA datasets folder on Moodle), you are required to specify and estimate a consumer expenditure functions model using the expenditure variable “SHEL” as your expenditure category of interest, i.e. the regressand. (in description of the data set file)
Start by explaining the theoretical model you have chosen and justify the choice of variables included in the model by making reference to the literature. The estimated regression output must be interpreted and statistically analysed.
Any problems that emerge must be highlighted and, where possible, addressed. The regression results, together with the description of the data used, must be clearly shown in tables. All variables used must be clearly defined and relevant data sources must be acknowledged.
Your consumer expenditure equation should be presented in the form of an essay with supporting tables included in the main body of the essay.
The essay should not exceed 2 000 words (excluding the content of tables and references). There is no 10% margin available on the word count.

– using at least two models to anaylsis and compare,
– correct use of Harvard referencing;
– provides a short introduction on consumer expenditure functions and the literature that has been reviewed need to link to the essay question
– Need to test the model and variables and variables should significant
– need to interpreted the regression output correctly
– tested: heteroscedasticity, specification errors or multicollinearity

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