Economics 140A
Fall 2013
Professor Startz
Sketched Out Final Answers
Note that not all the details are shown here. The sketches here are just to point you in the right
direction. A good exam answer would generally have more details.
1.
Impulse Response
Step Response
2.
i) B:
(
)
ii) A: . The variance formulas of the OLS estimates derived using the usual assumptions are
wrong.
iii) D: OLS estimates are biased and the variance formulas of the OLS estimates derived
using the usual assumptions are wrong.
iv) C:
̂
̂
̂
v) B: truffle snuffling pigs
3.
Let’s
rewrite this equation as:
a.
We want to test that the coefficients on MARRIED, MARRIED*FE, and MARRIED*BLACK
are all
equal to zero. This calls for an F test:
This gives us:
(
)
(
)
0
0
0
0
0
0
1
1
2
1
1
2
2
0
1.5
2
1
2.5
3
0
0.75
3
1
2.75
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
page 2
2
b. The appropriate critical value is
(
)
c.
so we reject the null hypothesis.
d. The marginal effect of being female for whites is
. We want to solve
for the value of ED when this is equal to 0.1.
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 Staff
 Economics, Econometrics, Normal Distribution, Null hypothesis, OLS, ols estimator

Click to edit the document details