Questions from Econometrics


Q: Do the fixed effects regression assumptions imply that cov (v∼

Do the fixed effects regression assumptions imply that cov (v∼it, v∼is) = 0 for t ≠ s in Equation (10.28)? Explain. Data from Equation 10.28:...

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Q: Suppose a researcher believes that the occurrence of natural disasters such as

Suppose a researcher believes that the occurrence of natural disasters such as earthquakes leads to increased activity in the construction industry. He decides to collect province-level data on employ...

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Q: Consider observations (Yit, Xit) from the linear panel data

Consider observations (Yit, Xit) from the linear panel data model Yit = Xit1 + i + it + uit, where t = 1, ……, T; i = 1, ……, n; and i + it is an unobserved entity-specific time trend. How would yo...

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Q: a. In the fixed effects regression model, are the fixed

a. In the fixed effects regression model, are the fixed entity effects, ai, consistently estimated as with T fixed? b. If n is large (say, n = 2000) but T is small (say, T = 4), do you think that the...

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Q: Seven hundred income-earning individuals from a district were randomly selected

Seven hundred income-earning individuals from a district were randomly selected and asked whether they are government employees (Govi = 1) or not (Govi = 0); data were also collected on their gender (...

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Q: In a population, Y = 50 and 2Y =

In a population, Y = 50 and 2Y = 21. Use the central limit theorem to answer the following questions: a. In a random sample of size n = 50, find Pr (Y 49). c. In a random sample of size n = 45, fin...

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Q: Suppose a random variable Y has the following probability distribution: Pr

Suppose a random variable Y has the following probability distribution: Pr (Y = 1) = p, Pr (Y = 2) = q, and Pr (Y = 3) = 1 - p - q. A random sample of size n is drawn from this distribution, and the r...

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Q: State which model you would use for: a. A

State which model you would use for: a. A study explaining the number of hours a person spends working in a factory during one week. b. A study explaining the level of satisfaction (0 through 5) a per...

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Q: Seven hundred income-earning individuals from a district were randomly selected

Seven hundred income-earning individuals from a district were randomly selected and asked whether they are government employees (Govi = 1) or not (Govi = 0); data were also collected on their gender (...

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Q: Seven hundred income-earning individuals from a district were randomly selected

Seven hundred income-earning individuals from a district were randomly selected and asked whether they are government employees (Govi = 1) or not (Govi = 0); data were also collected on their gender (...

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