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Unformatted text preview: as well as the residual variance. 2. Predict the eect on average log earnings of decreasing everybodys education level by one year. 3. Can you obtain the above eect by running a regression with a redened set of covari-ates? How? 4. Predict the eect on the average level of earnings of the following policy: increase the level of education for those who currently have earnings below 12 years of education to 12, and leave the level of education for others unchanged. 5. Calculate the standard error for the above policy....
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- Fall '07