Questions from Econometrics

Q: (i) A model to estimate the effects of smoking on

(i) A model to estimate the effects of smoking on annual income (perhaps through lost work days due to illness, or productivity effects) is log(income) = 0 + 1cigs + 2educ + 3age + 4age2 + u1, wh...

Q: A common method for estimating Engel curves is to model expenditure shares

A common method for estimating Engel curves is to model expenditure shares as a function of total expenditure, and possibly demographic variables. A common specification has the form; sgood = 0 + 1l...

Q: (i) Because log(pcinc) is insignificant in both

(i) Because log(pcinc) is insignificant in both (16.22) and the reduced form for open, drop it from the analysis. Estimate by OLS and IV without log(pcinc). Do any important conclusions change? (ii) S...

Q: Use the Economic Report of the President (2005 or later)

Use the Economic Report of the President (2005 or later) to update the data in CONSUMP, at least through 2003. Reestimate equation. Do any important conclusions change?

Q: (i) Suppose that, after differencing to remove the unobserved

(i) Suppose that, after differencing to remove the unobserved effect, you think (log(polpc) is simultaneously determined with (log(crmrte); in particular, increases in crime are associated with increa...

Q: For this exercise, use the data in AIRFARE, but only

For this exercise, use the data in AIRFARE, but only for the year 1997. (i) A simple demand function for airline seats on routes in the United States is Log(passen) = 10 + 1log(fare) + 11log(dist)...

Q: Use the data in WAGE2 for this exercise. (i

Use the data in WAGE2 for this exercise. (i) If sibs is used as an instrument for educ, the IV estimate of the return to education is .122. To convince yourself that using sibs as an IV for educ is no...

Q: Use the data in LABSUP to answer the following questions. These

Use the data in LABSUP to answer the following questions. These are data on almost 32,000 black or Hispanic women. Every woman in the sample is married. It is a subset of the data used in Angrist and...

Q: Consider the analysis in Computer Exercise C11 in Chapter 4 using the

Consider the analysis in Computer Exercise C11 in Chapter 4 using the data in HTV, where educ is the dependent variable in a regression. (i) How many different values are taken on by educ in the sampl...

Q: Use the data in CARD for this exercise. (i

Use the data in CARD for this exercise. (i) In Table 15.1, the difference between the IV and OLS estimates of the return to education is economically important. Obtain the reduced form residuals, v^2,...