Practical 5

# Practical 5 - Use Wool dr i dge<wage1> • Di f f er...

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Pr act i cal 5 Febr uar y 3, 2010

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2 Logs, squar i ng, et c Use Wool dr i dge <WAGE1> M1: l _wage on educ & i nt er pr et coef f i ci ent s M2: l _wage on educ & exper ; M3: l _wage on exper ; M4: l _wage on exper & exper ^2; M5: l _wage on educ, exper & exper ^2 Anot her exampl e: Wool dr i dge <CEOSAL1> Run l _sal on l _sal es & i nt er pr et coef f i ci ent s [ obser ve het er oskedast i ci t y]
3 Dummy var i abl es

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Unformatted text preview: Use Wool dr i dge <wage1> • Di f f er ent i nt er cept , same sl ope [ y = f ( X, D) ] 4 I nt er act i on var i abl es • Di f f er ent i nt er cept , di f f er ent sl ope [ y = f ( X, D, X* D) ] • genr f em_mar r i ed = f emal e* mar r i ed • genr f em_educ = f emal e* educ • Same i nt er cept , di f f er ent sl ope [ y = f ( X, X* D) ] 5 Mul t i col l i near i t y • Use Ramanat han <dat a3- 7>...
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Practical 5 - Use Wool dr i dge<wage1> • Di f f er...

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