Questions from General Economics

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

Use the data in WAGE2 for this exercise. (i) Consider the standard wage equation Log(wage) =

Q: (i) The variable phsrank is the person’s high school percentile

(i) The variable phsrank is the person’s high school percentile. (A higher number is better. For example, 90 means you are ranked better than 90 percent of your graduating class.) Find the smallest, l...

Q: The data set 401KSUBS contains information on net financial wealth (nettfa

The data set 401KSUBS contains information on net financial wealth (nettfa), age of the survey respondent (age), annual family income (inc), family size (fsize), and participation in certain pension p...

Q: (i) Use OLS to estimate the model Log

(i) Use OLS to estimate the model Log(psoda) = β0 + β1prpblck + β2log(income) + β3prppov + µ, and report the results in the usual form. Is

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

Use the data in ELEM94_95 to answer this question. The findings can be compared with those in Table 4.1. The dependent variable lavgsal is the log of average teacher salary and bs is the ratio of av...

Q: (i) Estimate the regression model educ = β0

(i) Estimate the regression model educ = β0 + β1motheduc + β2fatheduc + β3abil + β4abil2 + µ by OLS and report the results in the usual form. Test the null hypothesis that educ is linearly related to...

Q: Use the data in ECONMATH to answer the following questions.

Use the data in ECONMATH to answer the following questions. (i) Estimate a model explaining colgpa to hsgpa, actmth, and acteng. Report the results in the usual form. Are all explanatory variables sta...

Q: 6 Consider the multiple regression model containing three independent variables, under

6 Consider the multiple regression model containing three independent variables, under Assumptions MLR.1 through MLR.4: y = 0 +  1x1 +  2x2 +  3x3 + u. You are interested in estimating the sum of...

Q: Which of the following can cause the usual OLS t statistics to

Which of the following can cause the usual OLS t statistics to be invalid (that is, not to have t distributions under H0)? (i) Heteroskedasticity. (ii) A sample correlation coefficient of .95 between...

Q: Consider an equation to explain salaries of CEOs in terms of annual

Consider an equation to explain salaries of CEOs in terms of annual firm sales, return on equity (roe, inpercentage form), and return on the firm’s stock (ros, in percentage form): Log(salary) = B0 +...