metricsexam2s08

metricsexam2s08 - Econometrics Exam 2 By writing your PID...

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Econometrics Exam 2 By writing your PID below, you are indicating April 29, 2008 your intention to abide by the honor pledge: PID: This exam consists of ten short questions ( worth four points apiece ) and five long questions ( worth twelve points each ) , for a total of 100 points. You have 120 minutes to answer all completely and clearly in the space provided. Short Questions 1. What is the advantage of using instrumental variables, relative to OLS, and what is the disadvantage? 2. What would cause the first - difference and fixed - effects estimators to give substantially different results? 3. When estimating a system of equations, what would determine whether you use “seemingly unrelated regression” or “three - stage least squares”?
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4. What does it mean for an estimator to be “unbiased”? 5. List three tests you should perform, if possible, after estimating a model using instrumental variables. 6. State the assumptions of the OLS model. 7. When does “simultaneity bias” arise, and what technique ( s ) can eliminate the bias?
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alternative hypothesis? 9. In what situations does sample selection not cause a bias in OLS estimates? 10. What is a “natural experiment”?
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This note was uploaded on 03/19/2010 for the course ECON 570 taught by Professor Staff during the Spring '08 term at UNC.

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metricsexam2s08 - Econometrics Exam 2 By writing your PID...

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