Posted: July 15th, 2021
MIM 732Empirical Project BSubmission: via BlueLineObjective: The purpose of this project is to compare and contrast U.S. economic data during the financial crisis of the 2007-2008 financial crisis and the COVID-19 pandemic. The project will promote exposure to economic data through the use of a commonly used economic database. Spreadsheet skills will be demonstrated in the analysis of the data and an understanding of textbook concepts will be demonstrated in the interpretation of such results.You should use Excel for this project as this project serves to verify that students of our graduate programs possess basic Excel skills. As a student of Creighton University, you have free access to Microsoft Office 365 including the Office suite (including Excel) for educational use. Please let me know if you need directions for downloading this software.Part 1: Data CollectionWe will use the FRED database from the St. Louis Federal Reserve Bank for this project. You can find these data here:https://fred.stlouisfed.org/Once you arrive at the home you will need to complete the below steps:1.Download (as an Excel document) the following three series of economic data for the 2006-01 –01 to 2020-12 -01 time period in the intervals mentioned below.a.Consumer Price Index for All Urban Consumers: All Items in U.S. City Average (monthly)b.Real gross domestic product per capita (quarterly)c.Unemployment Rate (UNRATE) (monthly)2.You can search for the data in the search bar of the above website and then choose the option to download the data once they are displayed the graph. Alternatively, you are welcome use the Excel Add-In provided by FRED if you prefer.Part 2: Data Preparation1.Use the above files that you have downloaded from the IFS and merge them together. It is generallyeasier to work with your data with each variable structured as a column (it is easier to see!). Select and copy all of your data from the three data series and merge them by date. Make sure that the monthly and quarterly data align by the same day starting the period and they are in three columns on the same sheet. You will have missing rows for the monthly data.
Part 3: Analysis:1.For each quarter, calculate the percentage change in real GDP per capita from one quarter over the same quarter from the previous year. For example, your calculation for 2007Q1 will be equal to (2007Q1-2006Q1)/2006Q1. You will not be able to calculate this measure for 2006. You will want to multiply your answer by 100 so that it is expressed in “percent form” similar to the inflation and employment data series.2.Add an additional column and calculate CPI-based inflation on a year-over-year basis for each month (similar to Step 1). 3.You should now have data that includes inflation and real GDP per capita growth data calculated on a year-over-year basis as well as a monthly measure of unemployment that is already expressed in percent. 4.Create a line graph using your data that includes the percentage change in real GDP per capita, inflation (% change in CPI), and unemployment. You should make sure your axes and data series are labelled and that you include data from 2007Q1 to 2020 Q4. Your resulting graph will look similar to the following (but with different values and dates): 5.Cut and paste your graph into a Word document. 6.Briefly describe (in words) the evolution of the three variables (in the Word document) over the specified time period. 7.Compare the movements in the three variables during the 2008-2009 (and later recovery) to those incurrent COVID-19 pandemic. How are they similar? How are they different?8.Do the movements in the data fit the theory described in the textbook discussion of the business cycle? Your response should be no longer than size or seven sentences.9.Please submit the following two items via BlueLine:a.Word (.docx) or Acrobat (.pdf) document with graphs and written discussionb.Excel (or other) data file that shows your respective calculations
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