Section_11

Section_11 - eØ iÓÒE ÓÒ4 G:edÚ iga Ö×ÓaÒdX...

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Unformatted text preview: eØ iÓÒE ÓÒ4 G :edÚ iga Ö×ÓaÒdX iaÓÝÙ * Ò ×ØÖÙÑ eÒ Øa Ða Ö iab Ðe eg Öe ×× iÓÒ G eÒ eÖa ÐÑ Ód e Ð • Y i = β + β 1 X i + β 2 W i + u i Û h eÖe : Y i i×Øh ed eÔ eÒd eÒ ØÚa Ö iab Ðe u i i×Øh eeÖÖÓ ÖØeÖÑ ÖeÔ Öe×eÒ Ø iÒgÑ ea ×Ù ÖeÑ eÒ ØeÖÖÓ ÖaÒdÓ ÖÓÑ iØØed faØÓ Ö× X i i×Øh eeÒdÓgeÒÓÙ × Öeg Öe××Ó Ö Cov ( X,u ) negationslash = 0 W i i×Øh e iÒ ÐÙd ed eÜÓgeÒÓÙ × Öeg Öe××Ó Ö Cov ( W,u ) = 0 Z i i×Øh e iÒ ×ØÖÙÑ eÒ Ø Û h ih ×a Ø ie× : ∗ iÒ ×ØÖÙÑ eÒ ØÖe ÐeÚaÒe : Cov ( Z,X ) negationslash = 0 ∗ iÒ ×ØÖÙÑ eÒ ØeÜÓgeÒ e iØÝ : Cov ( Z,u ) = 0 A ××ÙÑ Ô Ø iÓÒ × E ( u i | W i ) = 0 ( X i ,W i ,Z i ,Y i ) a Öe iÒd eÔ eÒd eÒ Ø ÐÝaÒd id eÒ Ø ia ÐÐÝd i×ØÖ ibÙ Øed ( i.i.d. ) d ÖaÛ × fÖÓÑ Øh e iÖ jÓ iÒ Ød i×ØÖ ibÙ Ø iÓÒ a ÖgeÓÙ Ø ÐieÖ×a ÖeÙÒ Ðik e ÐÝ :h e X ′ s W ′ s Z ′ s aÒd Y haÚ eÒÓÒ ÞeÖÓÒ iØe fÓÙ ÖØhÑ ÓÑ eÒ Ø× 4h eØÛ ÓÓÒd iØ iÓÒ × fÓ ÖaÚa Ðid iÒ ×ØÖÙÑ eÒ ØhÓ Ðd :iÒ ×ØÖÙÑ eÒ ØÖe ÐeÚaÒeaÒd iÒ ×ØÖÙÑ eÒ ØeÜÓgeÒ e iØÝ E ×Ø iÑ a Ø...
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This note was uploaded on 02/02/2012 for the course ECON 140 taught by Professor Duncan during the Spring '08 term at Berkeley.

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Section_11 - eØ iÓÒE ÓÒ4 G:edÚ iga Ö×ÓaÒdX...

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