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Estimating key macroeconomic relationships at the undergraduate level: Taylor rule and Okun’s Law examples

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Author Info
Miles B. Cahill () (Department of Economics, College of the Holy Cross)
Abstract

This paper presents some Excel-based exercises that allow students to estimate some key macroeconomic relationships: Okun's Law and the Taylor rule. The Okun's law exercise has the additional benefit of providing estimates for long-run GDP growth. The Taylor rule exercises give students the opportunity to replicate, and then improve upon a seminal paper in macroeconomics. Overall, these exercises give students an introduction to some key aspects of conducting empirical research in macroeconomics, including manipulating models into a form that can be estimated and gathering and manipulating data. In addition, the exercises provide students with useful spreadsheet skills that can be used in other assignments and other arenas, long after graduation.

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File URL: http://www.holycross.edu/departments/economics/mcahill/AEA2006/
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Publisher Info
Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0602.

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Length: 20 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:hcx:wpaper:0602

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Related research
Keywords: Excel; teaching; Taylor Rule; Okun's Law;

Find related papers by JEL classification:
A2 - General Economics and Teaching - - Economic Education and Teaching of Economics

This paper has been announced in the following NEP Reports:

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