Questions from General Economics

Q: Estimate a variant on Fair’s model for predicting presidential election outcomes in

Estimate a variant on Fair’s model for predicting presidential election outcomes in the United States. (i) What argument can be made for the error term in this equation being serially uncorrelated? (H...

Q: True or false: “If the errors in a regression model

True or false: “If the errors in a regression model contain ARCH, they must be serially correlated.”

Q: (i) A regression of the OLS residuals on the lagged

(i) A regression of the OLS residuals on the lagged residuals produces

Q: We found evidence of heteroskedasticity in ut in equation (12.

We found evidence of heteroskedasticity in ut in equation (12.47). Thus, we compute the heteroskedasticity-robust standard errors (in 3#4) along with the usual standard errors: What does using the het...

Q: Consider a standard multiple linear regression model with time series data:

Consider a standard multiple linear regression model with time series data: Assume that Assumptions TS.1, TS.2, TS.3, and TS.4 all hold. (i) Suppose we think that the errors {ut} follow an AR(1) model...

Q: Use the data in TRAFFIC2 for this exercise. (i

Use the data in TRAFFIC2 for this exercise. (i) Compute the first order autocorrelation coefficient for the variable prcfat. Are you concerned that prcfat contains a unit root? Do the same for the un...

Q: Assume that the averages of all factors other than educ have remained

Assume that the averages of all factors other than educ have remained constant over time and that the average level of education is 12.2 for the 1972 sample and 13.3 in the 1984 sample. Using the esti...

Q: Using the data in KIELMC, the following equations were estimated using

Using the data in KIELMC, the following equations were estimated using the years 1978 and 1981: And Compare the estimates on the interaction term y81·nearinc with those from equation (13...

Q: If we think that b1 is positive in (13.14

If we think that b1 is positive in (13.14) and that Dui and Dunemi are negatively correlated, what is the bias in the OLS estimator of b1 in the first-differenced equation?

Q: Suppose that we want to estimate the effect of several variables on

Suppose that we want to estimate the effect of several variables on annual saving and that we have a panel data set on individuals collected on January 31, 1990, and January 31, 1992. If we include a...