Questions from General Economics

Q: Let us modify Computer Exercise C4 in Chapter 8 by using voting

Let us modify Computer Exercise C4 in Chapter 8 by using voting outcomes in 1990 for incumbents who were elected in 1988. Candidate A was elected in 1988 and was seeking reelection in 1990; voteA90 is...

Q: Let math10 denote the percentage of students at a Michigan high school

Let math10 denote the percentage of students at a Michigan high school receiving a passing score on a standardized math test (see also Example 4.2). We are interested in estimating the effect of per-s...

Q: Use the data set GPA1 for this exercise. (i

Use the data set GPA1 for this exercise. (i) Use OLS to estimate a model relating colGPA to hsGPA, ACT, skipped, and PC. Obtain the OLS residuals. (ii) Compute the special case of the White test for h...

Q: The following equation explains weekly hours of television viewing by a child

The following equation explains weekly hours of television viewing by a child in terms of the child’s age, mother’s education, father’s education,...

Q: In Example 4.4, we estimated a model relating number

In Example 4.4, we estimated a model relating number of campus crimes to student enrollment for a sample of colleges. The sample we used was not a random sample of colleges in the United States, becau...

Q: In the model (9.17), show that OLS consistently

In the model (9.17), show that OLS consistently estimates a and b if

Q: Consider the simple regression model with classical measurement error, y

Consider the simple regression model with classical measurement error, y =

Q: The point of this exercise is to show that tests for functional

The point of this exercise is to show that tests for functional form cannot be relied on as a general test for omitted variables. Suppose that, conditional on the explanatory variables

Q: Suppose that log1y2 follows a linear model with a linear form of

Suppose that log1y2 follows a linear model with a linear form of heteroskedasticity. We write this as so that, conditional on x, u has a normal distribution with mean (and median) zero but with varian...

Q: This exercise shows that in a simple regression model, adding a

This exercise shows that in a simple regression model, adding a dummy variable for missing data on the explanatory variable produces a consistent estimator of the slope coefficient if the â€...