ECO1013
PRINCIPLES OF ECONOMICS
SEMESTER 1 - TUTORIAL 1
This tutorial will introduce the data source and prepare you to use the
appropriate data to support your arguments in your essay. It will give you
a nudge to get started early by downloading the data and beginning the
first parts of the analysis using Excel.
In advance of the tutorial next week students should:
Go to World Bank - World Development Indicators
Click on Variables and then Country
Deselect selected countries (click on the cross) and select all
countries (click the check mark). Make sure that all countries have
been selected.
Then click on Series. Deselect preselected series (click x) and select
(tick) the following variables in the following order: 1) GDP Per
Capita PPP at constant 2021 Internation $ (this is GDP per capita
adjusted for exchange rates (Purchasing Power Parity) and inflation
(because at constant $)), 2) Income share held by highest 10%, 3)
Income share held by the lowest 10%, 4) Gini Index.
Then click on Time. Deselect preselected year and select (tick) 2000
and 2020
Now. Click on Layout. Click on Custom and then choose Time on the
Column, Series on the Column, and Country on the Row (as shown
below).
Click on Format Numbers (see above) and select Units in thousands.
In the Preview window, you should have a table like the one below.
Click on Download Options and download it as an Excel file. Save it
in a folder on your computer because we will use it again next week.
We will use downloaded data to graphically analyse it in Excel. Start
opening the file.
Sort GDP per capita in 2020 from the smallest to the largest (A to Z)
using the sort function in Excel. After sorting, delete rows for
countries for which GDP per capita in 2020 is missing (these are
cells for which data for GDP per capita is replaced with dots). You
should have 20ish countries (reported at the end) for which data on
GDP per capita in 2020 is not available.
Select the Country and the GDP per capita in 2020 columns, click on
insert and choose Insert Column Bar Chart (see below)
Copy and paste the Graph in Microsoft Word and provide a short
comment on the distribution of income
Delete the Graph in Excel.
Let’s work with the rate of growth of income. The average rate of
growth of income between 2020 and 2000 is (Income per capita in
2020 – Income per capita in 2000)/Income per capita in 2000.
To compute the rate of growth in Excel you can use the Formula Tab
(see picture). Select an empty cell on the Second Row. Data for
Income per capita in 2020 in the picture is reported in the cell G2
and Income per capita in 2000 in C2. Hence in the Formula Tab you
need to type: =(G2-C2)/C2 (as shown). You can also just type = in
the Formula Tab and click on cells G2, and C2 as shown.
Once obtained the figure for the rate of growth for the first country
you just need to drag down numbers to have complete data on GDP
growth.
Select the Country and the obtained GDP growth column and make
a Column Chart (as did before for GDP per capita).
Which countries have grown the most and the least over these 20
years? What about the UK and Ireland?
We will now use histograms to look at the distribution of
individuals/countries holding the top 10% share of income in 2020 and
2000.
Sort the column for the top 10% rich in 2000 from the smallest to
the largest (as done before for income).
Select this column (select till the point you have data as shown
below), click on Insert, then Insert Statistical Graph, and finally
Histogram (see below).
Copy and paste the graph in Word and delete the graph in Excel.
Now repeat the same steps for the Top 10% earners in 2000. Sort
the column. Select till the point where you have data. Insert
histogram.
Do you see differences in the distribution of the Top 10% earners
between 2020 and 2000. Explain.
In the next tutorial we will use graphs to look at the correlation.
