Questions from General Economics

Q: / (i) Using the data in CRIME1, estimate

(i) Using the data in CRIME1, estimate this model by OLS and verify that all fitted values are strictly between zero and one. What are the smallest and largest fitted values? (ii) Estimate the equatio...

Q: Use the data in ATTEND for this exercise. In the

Use the data in ATTEND for this exercise. In the model of Example 6.3, argue that Use equation (6.19) to estimate the partial effect when priGPA 5 2.59 and atndrte 5 82. Interpret your estimate. Show...

Q: Use the data in HPRICE1 for this exercise. (i

Use the data in HPRICE1 for this exercise. (i) Estimate the model and report the results in the usual form, including the standard error of the regression. Obtain predicted price, when we plug in lots...

Q: The data set NBASAL contains salary information and career statistics for 269

The data set NBASAL contains salary information and career statistics for 269 players in the National Basketball Association (NBA). Estimate a model relating points-per-game (points) to years in the l...

Q: (i) Apply RESET from equation (9.3)

(i) Apply RESET from equation (9.3) to the model estimated.. Is there evidence of functional form misspecification in the equation? (ii) Compute a heteroskedasticity-robust form of RESET. Does your co...

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

Use the data set WAGE2 for this exercise. (i) Use the variable KWW (the “knowledge of the world of work” test score) as a proxy for ability. What is the estimated return to education in this case? (ii...

Q: Use the data from JTRAIN for this exercise. (i

Use the data from JTRAIN for this exercise. (i) Consider the simple regression model where scrap is the firm scrap rate and grant is a dummy variable indicating whether a firm received a job training...

Q: Use the data for the year 1990 in INFMRT for this exercise

Use the data for the year 1990 in INFMRT for this exercise. (i) Reestimate equation (9.43), but now include a dummy variable for the observation on the District of Columbia (called DC). Interpret the...

Q: Use the data in RDCHEM to further examine the effects of outliers

Use the data in RDCHEM to further examine the effects of outliers on OLS estimates and to see how LAD is less sensitive to outliers. The model is where you should first change sales to be in billions...

Q: In example given below by dropping schools where teacher benefits are less

In example given below by dropping schools where teacher benefits are less than 1% of salary. (i) How many observations are lost? (ii) Does dropping these observations have any important effects on th...