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Unformatted text preview: –1– Econ 220B Final Exam Winter 2010 DIRECTIONS: No books or notes of any kind are allowed. Answer all questions on separate paper. 250 points are possible on this exam. 1.) (20 points total) A regression of a scalar y t on a vector x t produces an OLS regression coe ﬃ cient given by b = " T X t =1 x t x t # − 1 " T X t =1 x t y t # . Suppose that the vector ( y t , x t ) is stationary and ergodic with E · y t x t ¸ = · µ y μ x ¸ E · y 2 t y t x t x t y t x t x t ¸ = · Σ yy Σ xy Σ xy Σ xx ¸ . a.) (10 points) Find the plim of b . b.) (10 points) Can you describe two di f erent kinds of situations in which this plim of b would be the object that an economist would want to know? 2.) (90 points total) An economist has data on the following observations: y t = log of tons of steel produced in the U.S. in year t c t = log of number of workers employed by U.S. steel industry in year t k t = log of real value of capital stock of U.S. steel industry in year t n t = log of energy consumed by steel industry in year t The economist is interested in estimating a Cobb-Douglas production function of the form y t = α 1 c t + α 2 k t + α 3 n t + ε t where ε t represents a shock to the production function. Let y = y 1 ....
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This note was uploaded on 03/02/2012 for the course ECON 220b taught by Professor Hamilton,j during the Spring '08 term at UCSD.
- Spring '08