Consumption of the us Research Paper Example | Topics and Well Written Essays - 1750 words

Consumption of the us - Research Paper Example It is important to understand the impacts caused by United States top leadership in the country’s economy. This is of importance knowing the current economical position of US where fears of recession are evidently delayed often. The result will adopt an econometric approach. This entails description of all the estimation techniques used, the data set and the regression model. Later the results got will be used to reject or support the hypothesis that the political relationship of United States president tend to have on their country’s GDP. Finally, several independent tests will be conducted to determine the strength of the model, within which a conclusion of the regression success will be made. Gross Domestic Product is the measure and determinant of national income and output for a given country’s economy over a certain period. It is measure on the total market value of all final services and goods produced in a country over a given period of time (A financial year). The evaluation process of GDP includes the sum of value added at every intermediate stage of all goods and services produced within a country in a given period monetarily. First, it is important to specify that this study use time series data and ordinary least square regression method of data estimation. Through excel a set of parameters will be evaluated, from which a line of best fit will be obtained. The regression model is developed using figures from 2004 to 2013, which contains enough information of the number of president who have been in office and it has also been the time of global and United States years of Financial crisis. Both the democrats and republicans have shared a time in the presidential seat during this period. This offers an even basis of analysis. Y is the dependent variable, which for the intention of this paper is the going to the growth rate in US GDP over the chosen period (2004 to 2013). The data used was obtained from Economic report of the president,