General methodology of modern economic research Step 1:Data collections and summary of empirical stylized facts Step 1:Data collections and summary of empirical stylized facts Example 3:volatility clustering in finance: A high volatility today tends to be followed by another high volatility tomorrow,a low volatility today tends to be followed by another low volatility tomorrow,and both alternate over time. m 500 10001500 2000 2500 time Probability and Statistics for Economists Introduction to Statistics and Econometrics May13,2019 6Probability and Statistics for Economists Introduction to Statistics and Econometrics May 13, 2019 6 Step 1: Data collections and summary of empirical stylized facts Example 3: volatility clustering in finance: A high volatility today tends to be followed by another high volatility tomorrow, a low volatility today tends to be followed by another low volatility tomorrow, and both alternate over time. General methodology of modern economic research Step 1: Data collections and summary of empirical stylized facts