Econ140A_Sample_FINAL_key

Econ140A_Sample_FINAL_key - Rebecca Toseland Mathurin Som...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Rebecca Toseland Mathurin Somé Answer Key Sample FINAL S2011
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

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

View Full DocumentRight Arrow Icon
Background image of page 4
Problem 6 a) Period Δexpend t Δ crime t 1 1 - 0.023 2 0 0.76*(- 0.023)= -0.01748 3 0 0.76 2 *(- 0.023)=0.76*( -0.01748) = -0.01328 4 0 0.76 3 *(- 0.023)=0.76*( -0.01328) = -0.0101
Background image of page 5

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

View Full DocumentRight Arrow Icon
b) For this, use the formula from the last slide of the functional forms lecture for a sustained change in an independent variable (spending on law enforcement) in the presence of a lagged dependent variable: 1 x y t For this question, the formula would be 3 2 1 x y t which gives 76 . 0 1 023 . 0 1 3 2 = -0.09583. This means that if the city spends one more dollar each year on law enforcement that 0.09583 fewer crimes per 10,000 residents will be committed. Equivalently, if the city spends $1000 more on law enforcement each year, 95.83 few crimes per 10,000 residents will be committed (or just under a 1% reduction in crime). Not an awful return for the investment. Problem 7
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/26/2011 for the course ECON 140a taught by Professor Staff during the Fall '08 term at UCSB.

Page1 / 9

Econ140A_Sample_FINAL_key - Rebecca Toseland Mathurin Som...

This preview shows document pages 1 - 7. Sign up to view the full document.

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