Questions from General Economics

Q: This question assumes that you have access to a statistical package that

This question assumes that you have access to a statistical package that computes standard errors robust to arbitrary serial correlation and heteroskedasticity for panel data methods. (i) For the pool...

Q: Use the data in ELEM94_95 to answer this question.

Use the data in ELEM94_95 to answer this question. The data are on elementary schools in Michigan. In this exercise, we view the data as a cluster sample, where each school is part of a district clust...

Q: Let invent be the real value inventories in the United States during

Let invent be the real value inventories in the United States during year t, let GDPt denote real gross domestic product, and let r3t denote the (ex post) real interest rate on three-month T-bills. Th...

Q: The data set DRIVING includes state-level panel data (for

The data set DRIVING includes state-level panel data (for the 48 continental U.S. states) from 1980 through 2004, for a total of 25 years. Various driving laws are indicated in the data set, including...

Q: Use the data set in AIRFARE to answer this question. The

Use the data set in AIRFARE to answer this question. The estimates can be compared with those in Computer Exercise 10, in this Chapter. (i) Compute the time averages of the variable concen; call these...

Q: Use the data in COUNTYMURDERS to answer this question. The data

Use the data in COUNTYMURDERS to answer this question. The data set covers murders and executions (capital punishment) for 2,197 counties in the United States. (i) Consider the model where Î&ced...

Q: Use CRIME4 for this exercise. (i) Reestimate the

Use CRIME4 for this exercise. (i) Reestimate the unobserved effects model for crime in Example 13.9 but use fixed effects rather than differencing. Are there any notable sign or magnitude changes in t...

Q: For this exercise, we use JTRAIN to determine the effect of

For this exercise, we use JTRAIN to determine the effect of the job training grant on hours of job training per employee. The basic model for the three years is (i) Estimate the equation using fixed e...

Q: Papke also uses a model that allows each city to have its

Papke also uses a model that allows each city to have its own time trend: where ai and ci are both unobserved effects. This allows for more heterogeneity across cities. (i) Show that, when the previou...

Q: (i) In the wage equation in Example 14.4

(i) In the wage equation in Example 14.4, explain why dummy variables for occupation might be important omitted variables for estimating the union wage premium. (ii) If every man in the sample stayed...