Palgrave Handbook of Econometrics: Applied Econometrics

20 Methodology of Empirical Econometric Modeling

5 6 7 8 9 10

0.5

1.0

Log bankruptcies density

1700–1791 1892–1991 1792–1891

2 4 6 8 10

0.25

0.50

0.75

Log patents density

1700–1791 1792–1891

1892–1991

–10 –9 –8 –7 –6

2

4

6

Log industrial output per capita density

1700–1791 1792–1891

1892–1991

1.0 1.5 2.0 2.5 3.0 3.5

0.5

1.0

1.5

2.0

Log real equity prices density

1700–1791

1792–1891 1892–1991

Figure 1.3 Three centuries of data distributions of levels

1700175018001850190019502000

–0.5

0.0

0.5

1.0

Change in log bankruptcies

1700175018001850190019502000

–2

–1

0

1

2

Change in log patents

1700175018001850190019502000

–0.2

–0.1

0.0

0.1

Change in log industrial

output per capita

1700175018001850190019502000

–0.5

0.0

0.5 Change in log real equity prices

Figure 1.4 Changes in historical time series for the UK