exam1-fall09-practice-answers

exam1-fall09-practice-answers - Econometrics (ECO 721) -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Econometrics (ECO 721) - Fall 2009 Practice First Exam - Partial Answers 1 . Consider the following baseline regression for the demand for medical care, estimated on a sample of 3000 individuals, log( medex i ) = & + & 1 age i + & 2 age 2 i + & 3 f i + & 4 f i age i + & 5 f i age 2 i + & 6 log( price i )+ & 7 log( inc i )+ u i ; where medex i is the annual expenditure on medical care by person i , age i is the person&s age in years, f i is a dummy variable for female gender (=1 if female), price i is the price of medical care and inc i is household income. a . Describe the e/ect of age on medex . Note quadratic and interaction e/ects. b. Write down the restricted regression in a form suitable for estimation, the test statistic and degrees of freedom for the hypothesis that age has no e/ect on medex . F-test with 4 restrictions. c. Write down the restricted regression in a form suitable for estimation, the test statistic and degrees of freedom for the hypothesis that the e/ect of age on...
View Full Document

Page1 / 2

exam1-fall09-practice-answers - Econometrics (ECO 721) -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online