Questions from General Economics

Q: Consider a simple model to estimate the effect of personal computer (

Consider a simple model to estimate the effect of personal computer (PC) ownership on college grade point average for graduating seniors at a large public university: where PC is a binary variable ind...

Q: In a recent article, Evans and Schwab (1995) studied

In a recent article, Evans and Schwab (1995) studied the effects of attending a Catholic high school on the probability of attending college. For concreteness, let college be a binary variable equal t...

Q: Consider a simple time series model where the explanatory variable has classical

Consider a simple time series model where the explanatory variable has classical measurement error: where

Q: Suppose that you wish to estimate the effect of class attendance on

Suppose that you wish to estimate the effect of class attendance on student performance. A basic model is where the variables are defined as in Chapter 6. (i) Let dist be the distance from the student...

Q: Consider the simple regression model / and let z be

Consider the simple regression model and let z be a binary instrumental variable for x. Use (15.10) to show that the IV estimator

Q: Suppose that, for a given state in the United States,

Suppose that, for a given state in the United States, you wish to use annual time series data to estimate the effect of the state-level minimum wage on the employment of those 18 to 25 years old (EMP)...

Q: Refer to equations (15.19) and (15.

Refer to equations (15.19) and (15.20). Assume that σu = σx, so that the population variation in the error term is the same as it is in x. Suppose that the instrumental variable,...