1.3 THE METHODOLOGY OF ECONOMETRICS e Procedures of econometrics analysis 1. Creating a Statement of Theory or Hypothesis That is to find out what economic theory says on this subject 2. Collecting data Three types of data for empirical analysis (1) Times series data, collected over a period of time Quantitative data Quantitative data/variables( dummy or categorical (2) Cross-sectional data: data on one or more variables collected at one point in time (3) Pooled data: have elements of both time series and cross-sectional data (4) Panel data: longitudinal or micropanel data. the same cross sectional unit, say, a family or firm, is surveyed over time1.3 THE METHODOLOGY OF ECONOMETRICS Procedures of econometrics analysis: 1.Creating a Statement of Theory or Hypothesis That is to find out what economic theory says on this subject. 2. Collecting Data Three types of data for empirical analysis: （1）Times series data, collected over a period of time. Quantitative data Quantitative data/variables（dummy or categorical ） （2）Cross-sectional data: data on one or more variables collected at one point in time. （3）Pooled data: have elements of both time series and cross-sectional data. （4）Panel data:longitudinal or micropanel data, the same cross￾sectional unit, say, a family or firm, is surveyed over time