ECO 4431: Analysis of Economic Data

Paul Beaumont
Department of Economics
Florida State University

Instructions for Project 1

Downloading and Plotting Economic Data

In this project you will: (1) download economic data from the inter-
net into a spreadsheet, (2) import that data into EViews , (3) produce
summary statistics and plots of the data, and (4) interpret your results.
This project serves as the FSU Computer Competency Re-
quirement for this class. You must earn a C- or better on this
project in order to earn a C- or better in the class. If you do
not earn at least a C- on this project you will have a chance
to resubmit the project ONE time in an attempt to improve
your grade. Please read the syllabus carefully for complete
details.
(1) Go to the Federal Reserve Bank of St. Louis FRED database
and download the following two monthly data series:
UNRATE: Current Civilian Unemployment Rate (Monthly)
PERMIT1: Current New Private Housing Units Authorized
by Building Permit - In Structures with 1 Unit (Monthly)
You can register on FRED and create a Data List that will
enable you to download both series on a single spreadsheet.
(2) Edit the spreadsheet so that missing observations at the begin-
ning and end of each series are eliminated.
(3) Load the data into EViews.
(4) Produce a histogram and stats for each data series.
(5) Produce a plot with both series on the same plot with PER-
MIT1 on the left axis and UNRATE on the right axis with the
date along the bottom axis.
(6) Add shading to your plot to denote periods of economic reces-
sions. The periods from the peak to the next trough should
be shaded and the periods from the trough to the next peak
should be unshaded. You can get the recession dates from the
NBER web page listed in the COURSE LIBRARY. (You should
already have a TEMPLATE graph to do this.) Remember that
1
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you will have to FREEZE the graph in order to add a TEM-

PLATE.
(7) Add titles and axis labels to your graph and save the graph in
your EViews work file by naming it.
(8) Write a brief 2 to 3 page report that includes:
(a) a title
(b) the date
(c) your name
(d) a complete description of the data including definition,
units, frequency, data range, and seasonal adjustment (this
is all on the FRED web page)
(e) cut and paste the summary statistics for each series
(f) cut and paste the graph of the series that you created
(g) interpret your graph — Are the series leading, coincidental
or lagging indicators for the business cycle? Has the nature
of the lead/lag relationship changed in recent years? Based
upon your graph, what do you expect to happen the the
economy in the next three months?
(h) include a complete citation for your data including the web
address where you downloaded it.
(9) Save your document as a pdf (preferred) or a doc file with the
file name “yourlastname-proj1.pdf” or “yourlastname-proj1.doc”
and submit the file to me before midnight on the due date via
the Blackboard Digital Dropbox.
(10) Late projects will be penalized at 10% per day.