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Unformatted text preview: oce. (iv) What is the density (pdf) of the unemployment spells in the records of the unemployment benets oce? (v) Give the loglikelihood function L ( ) if we follow the unemployed until they leave unemployment? (vi) How would this loglikelihood function change if we follow the unemployed for at most 6 months? Problem 2 For a sample of size n of households we observe whether the household has an internet connection or not, and a vector of explanatory variables x . (i) What is the dependent variable y ? (ii) If you specify and estimate a linear regression model for y , can you use the usual formula for the standard errors? (iii) Specify a logit model for y . (iv) Give the loglikelihood of the logit model for this sample. (v) If we distinguish between highspeed and dialup internet connections, specify a multinomial logit model for the choice between the three alternatives. (vi) Do you think that IIA holds in this case? Why (not)? 1...
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 Fall '07
 Rashidian
 Econometrics, Unemployment

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