Sketched out answers Final Econ140A 2011Fall

Page 2 in the first regression the contemporaneous

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Unformatted text preview: page 2 In the first regression the contemporaneous drop is 0.23. One period later the effect is . In the second regression, the one period effect is 0.97. One period later is the effect is . Since the coefficients in a regression with a lagged endogenous variable and serial correlation are biased, I’d go with the second forecast. 5. ( ( ) ) ( ) ( ) 6. We can think of the underlying latent variable in the probit as being . The probability of being married changes nonlinearly, but in the same direction, as does the latent variable. The marginal effect of education on the latent variable is 0.085...
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This test prep was uploaded on 03/19/2014 for the course ECON 140a taught by Professor Staff during the Spring '08 term at UCSB.

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