exam2_answer_120c_su07_S2 - STUDENT CONSENT FOR RELEASE OF...

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STUDENT CONSENT FOR RELEASE OF STUDENT INFORMATION (Buckley Waiver) I hereby authorize the UCSD Economics Department to return my graded final examination/research paper by placing it in a location accessible to all students in the course. I understand that the return of my examination/research paper as described above may result in disclosure of personally identifiable information, that is not public information as defined in UCSD PPM 160-2, and I hereby consent to the disclosure of such information. Quarter Summer 2007 ± S2 Course Econ 120C Date September 7, 2007 Instructor Professor Yongil Jeon Student ID# Print Name Signature

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2 Answer to FINAL EXAM, ECO 120C, SUMMER 2007 ± S2 Economics 120C Name: _________________________ September 7, 2007 Student ID#: ________key_______ Answer to Final Exam: Econometrics (Econ 120C) 1. (15 points) Multiple Choices 1-a) (3 points) A pooled cross-sectional data set a. is also referred to as panel data. b. is a collection of cross-sectional data sets, where each cross-sectional data set corresponds to a different time period. c. samples identical entities at least twice. d. is typically used for estimating the following regression model 01 2 1 , 1, ... it it it r r it it YX W W u E EE ± ± ± ± ± ± Answer : b 1-b) (3 points) The Fixed Effects regression model a. has n different intercepts. b. the slope coefficients are allowed to differ across entities, but the intercept is ±fixed² (remains unchanged). c. has ±fixed² (repaired) the effect of heteroskedasticity. d. in a log-log model may include logs of the binary variables, which control for the fixed effects. Answer : a 1-c) (3 points) The ±before and after² specification, binary variable specification, and ±entity-demeaned² specification produce identical OLS estimates a. as long as there are observations for more than two time periods. b. if you use the heteroskedasticity-robust option in your regression program. c. for the case of more than 100 observations. d. as long as T = 2 and the intercept is excluded from the ±before and after² specification. Answer : d
3 Answer to FINAL EXAM, ECO 120C, SUMMER 2007 ± S2 1-d) (3 points) Indicate for which of the following examples you cannot use Entity and Time Fixed Effects: a regression of a. OECD unemployment rates on unemployment insurance generosity for the period 1980-2006 (annual data). b. the (log of) earnings on the number of years of education, using the Current Population Survey of 60,000 households for March 2006. c. the per capita income level in Canadian Provinces on provincial population growth rates, using decade averages for 1960, 1970, and 1980. d. the risk premium of 75 stocks on the market premium for the years 1998- 2006.

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This note was uploaded on 10/21/2010 for the course ECON 1530 taught by Professor Ohly during the Spring '10 term at Dartmouth.

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exam2_answer_120c_su07_S2 - STUDENT CONSENT FOR RELEASE OF...

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