Unformatted text preview: as well as the residual variance. 2. Predict the eﬀect on average log earnings of decreasing everybody’s education level by one year. 3. Can you obtain the above eﬀect by running a regression with a redeﬁned set of covariates? How? 4. Predict the eﬀect 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
 Rashidian
 Econometrics, Linear Regression, Regression Analysis, 12 years, linear regression model, log weekly wage, average log earnings

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