Wooldridge IE AISE SSM ch01 - This edition is intended for...

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Unformatted text preview: This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 1 CHAPTER 1 SOLUTIONS TO PROBLEMS 1.1 It does not make sense to pose the question in terms of causality. Economists would assume that students choose a mix of studying and working (and other activities, such as attending class, leisure, and sleeping) based on rational behavior, such as maximizing utility subject to the constraint that there are only 168 hours in a week. We can then use statistical methods to measure the association between studying and working, including regression analysis that we cover starting in Chapter 2. But we would not be claiming that one variable causes the other. They are both choice variables of the student. 1.2 (i) Ideally, we could randomly assign students to classes of different sizes. That is, each student is assigned a different class size without regard to any student characteristics such as...
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This note was uploaded on 09/11/2011 for the course ECONOMICS eco375 taught by Professor Suzuki during the Spring '11 term at University of Toronto- Toronto.

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Wooldridge IE AISE SSM ch01 - This edition is intended for...

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