Questions from Econometrics

Q: Change in the sum of squares. suppose that b is the

Change in the sum of squares. suppose that b is the least squares coefficient vector in the regression of y on X and that c is any other K *1 vector. Prove that the difference in the two sums of squar...

Q: Partial Frisch and Waugh. In the least squares regression of y

Partial Frisch and Waugh. In the least squares regression of y on a constant and X, to compute the regression coefficients on X, we can first transform y to deviations from the mean y and, likewise, t...

Q: Reverse regression. A method of analyzing statistical data to detect discrimination

Reverse regression. A method of analyzing statistical data to detect discrimination in the workplace is to fit the regression y = a + x' + d + , (1) where y is the wage rate and d is a dummy variab...

Q: Using the cost function estimates in Example 10.2, we

Using the cost function estimates in Example 10.2, we obtained an estimate of the efficient scale, / We can use the delta method in Section 4.5.4 to compute an asymptotic standard error for the estima...

Q: Christensen and Greene (1976) estimated a “generalized Cobb–

Christensen and Greene (1976) estimated a “generalized Cobb–Douglas” cost function for electricity generation of the form ln C = a + b ln Q + g[1 (ln Q)2] + dk ln Pk + dl ln Pl + df ln Pf + e. Pk, Pl,...

Q: Using the estimated health outcomes model in Example 10.8,

Using the estimated health outcomes model in Example 10.8, determine the expected values of ln Income and Health Satisfaction for a person with the following characteristics: Female = 1, Working = 1,...

Q: Several applications in this and previous chapters have examined the returns to

Several applications in this and previous chapters have examined the returns to education in panel data sets. Specifically, we applied Hausman and Taylor’s approach in Examples 11.17...

Q: The data in Appendix Table F10.4 were used by Grunfeld

The data in Appendix Table F10.4 were used by Grunfeld (1958) and dozens of researchers since, including Zellner (1962, 1963) and Zellner and Huang (1962), to study different estimators for panel data...

Q: The data in Appendix Table F6.1 are an unbalanced panel

The data in Appendix Table F6.1 are an unbalanced panel on 25 U.S. airlines in the pre-deregulation days of the 1970s and 1980s. The group sizes range from 2 to 15. Data in the file are the following...

Q: Binary Choice. This application will be based on the health care

Binary Choice. This application will be based on the health care data analyzed in Example 14.13 and several others. Details on obtaining the data are given in Appendix F Table 7.1. We consider analysi...