Homework #5

Due 8am Saturday Nov 10, 2012

Econ B2000, MA Econometrics

Kevin R Foster, CCNY

For this exercise your study group may hand in a single assignment. When submitting assignments, please include your name and the assignment number as part of the filename. Please write the names of your study group members at the beginning of your homework. These assignments will be made public and available to all members of the class.

1. Find another academic article about your final project and write a short (about a page) review. (One article per person so a 3-person study group would write 3 reviews of 3 articles.)

2. Use the Fed Survey of Consumer Finances dataset (on Bb under "Content") and estimate a model for how people save for retirement. You should consider how to define savings. Give summary stats for your dependent and candidate independent variables. Please try some models with nonlinear and interaction terms (so for example, Age and Age², both interacted with some dummies). Compare the results of the different specifications.