Questions from Econometrics


Q: Would the regression in Equation (4.9) in chapter

Would the regression in Equation (4.9) in chapter 4 be useful for predicting test scores in a school district in Massachusetts? Why or why not? Data from Equation 4.9:

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Q: Consider the linear regression of TestScore on Income shown in Figure 8

Consider the linear regression of TestScore on Income shown in Figure 8.2 and the nonlinear regression in Equation (8.18). Would either of these regressions provide a reliable estimate of the causal e...

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Q: This exercise refers to the drunk driving panel data regression summarized in

This exercise refers to the drunk driving panel data regression summarized in Table 10.1. a. New Jersey has a population of 8.85 million people. Suppose New Jersey increased the tax on a case of beer...

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Q: A researcher wants to estimate the determinants of annual earnings—age

A researcher wants to estimate the determinants of annual earnings—age, gender, schooling, union status, occupation, and sector of employment. He has been told that if he collects panel data on a larg...

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Q: X is a Bernoulli random variable with Pr (X = 1

X is a Bernoulli random variable with Pr (X = 1) = 0.90; Y is distributed N (0, 4); W is distributed N (0, 16); and X, Y, and W are independent. Let S = XY + (1 – X) W. (That is, S = Y when X = 1, and...

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Q: Let ^1DM denote the entity-demeaned estimator given in Equation

Let ^1DM denote the entity-demeaned estimator given in Equation (10.22), and let ^BA1 denote the “before and after” estimator wi...

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Q: Consider the binary variable version of the fixed effects model in Equation

Consider the binary variable version of the fixed effects model in Equation except with an additional regressor, D1i; that is, let a. Suppose that n = 3. Show that the binary regressors and the â...

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Q: Section 9.2 gave a list of five potential threats to

Section 9.2 gave a list of five potential threats to the internal validity of a regression study. Apply that list to the empirical analysis and thereby draw conclusions about its internal validity. D...

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Q: Using the regression in Equation (10.11), what are

Using the regression in Equation (10.11), what are the slope and intercept for a. Entity 1 in time period 1? b. Entity 1 in time period 3? c. Entity 3 in time period 1? d. Entity 3 in time period 3?...

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Q: Consider the model with a single regressor. This model also can

Consider the model with a single regressor. This model also can be written as Yit = 0 + 1X1, it + 2B2t +  + TBTt + 2D2i ++ nDni + uit, where B2t = 1 if t = 2 and 0 otherwise, D2i = 1 if i = 2...

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