EC 821 Spring 2003 Problem Set 3 (due 30 April)

You can access the dataset over the web with the Stata command

use http://fmwww.bc.edu/ec-c/s2003/821/ec821aa.dta

The Stata datafile contains interest rate and price inflation series. In this file, the series y1, y2, ... y9 refer to interest rates on Treasury bills of one, two, ... nine months tenor, whereas the series pi1, pi2, ... pi9 refer to expected inflation measured over those same horizons.