CJ Kim
Econ 331 HW #2
1.Discuss the contribution of Scientific Management and flow (from Ford) to achieve the American
System of Manufacture, the first "New Competition"
The American System of Manufacture is achieved by having the 4 contributions, which a
Problem Set 3
Due 2/17/2011
(8)
Econometrics I
Resource Economics 702
1. The data set money.xlsx on the course website contains time series data for the following
variables:
M2 = seasonally adjusted M2 monetary aggregate measured in billions of dollars;
Problem Set 5
Due 3/22/11
Econometrics I
Resource Economics 702
1. Consider the following model of the aggregate US production:
Yt AK t1 L2 Et3 M t4 exput ;
t
where: Yt is an index of total US output in year t;
Kt is an index of capital input for year t;
Problem Set 6
Due 4/5
Econometrics I
Resource Economics 702
1. The following model was specified to estimate the effects of human capital on U.S. wages:
wagei 0 1 yrsed i 2 expi 3expi2 f fei f expfei u unioncovi p pensioni h hinspd i ui .
The data are fro
yrsed
hinspd
m
f
unioncov
unionmem
hioffered
pension
wage
hours
exp
age
number of years of education - calculated using mid-points of the categorical education variable.
Health insurance is paid by the employer
Male = 1, female = 0
Female = 1, male = 0
In
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Specification Bias
We discussed estimators in class for models that were misspecified, either by omitting important
variables or including irrelevant variables. We found that the OLS estimators for the model with omitted
variables were biased, but had sma
Summary
ResEc 702 Econometrics I
III. General Linear Model
A. Introduction: Theory suggests the variables we should include in our GLM. In class,
we reviewed results from a few microeconomic models. The consumers utility
maximization problem was used beca
The Box-Cox test for functional form: (See GHJ: pp. 345-346.)
There are two candidate models: a linear form and a log-log form. The latter would come
from a Cobb-Douglas specification, but you could also use a semi-log model the key is that
the dependent
1
Introductory Econometrics
I. Introduction
A. Definition of Econometrics - consider the two "parts" of the word.
1. Economics - allocation of scarce resources to competing ends.
Framework - economics provides a framework that helps us think about how the
Forecasting and Forecast Errors
First, we use the words forecasting and predicting interchangeably. The word
forecasting is often reserved for predicting values of the dependent variable beyond the current
time period or beyond the range of the sample of
Inference for the General Linear Model
1. Individual parameter tests.
Assume we are testing the null hypothesis:
H 0 : 1 = 0
H a : 1 0
b1 10
b1 0
,
=
sb1
2
x2
i
where sb1 is the standard error of the OLS estimate b1 and we insert the specific value
Th
Problem Set 1
Due Jan. 25
Resource Economics 702
Econometrics I
1. Show or derive the following:
a. Show that the following three estimators are equivalent:
b1
X Y Y X
X X X
i
i
2
i
i
i
x y
x
i
i
2
i
x Y ;
x
i
i
2
i
where xi ( X i X ) and yi (Yi Y ) . (2
CJ Kim
Econ 330 HW 2
1. What is the family wage? How does Gender factor into the labor market according to political
economists?
A family wage is a wage that is enough to support and raise a family. This is different from such wage
such as living wage, be
ResEc 000.5: Intro to SAS
II. SAS Windows Environment:
1. Start SAS under Programs in the Start menu.
2. SAS Windows Environment:
Explorer;
Results (a Table of Contents for output).
Editor (for Programs);
Log (tells what did and did not work); and
Ou
Exam 1
Resource Economics 702
Econometrics I
Complete all questions. Point values for each question are at the left. Point values represent the amount of
time for each question - you should finish within 100 minutes, plus or minus a small amount of sampli
Problem Set 2
Resource Economics 702
Econometrics I
1. A Sampling Experiment. Assume that nominal rates of interest (r) are affected directly by inflation (i).
Observed nominal rates are also affected by other purely stochastic shocks (u). Thus, our popul
Key - Problem Set 3
(8)
Econometrics I
Resource Economics 702
1. The data set money.xlsx on the course website contains time series data for the following
variables:
M2 = seasonally adjusted M2 monetary aggregate measured in billions of dollars;
GDP = s
Problem Set 4
Due 3/3/11
Econometrics I
Resource Economics 702
1. Suppose you estimate the following simple linear mod el: Yi 0 1 X i1 ui .
Unfortunately, the true model is: Yi 0 1 X i1 2 X i 2 vi . What are the
consequences for our simple linear model es
Problem Set 5
Econometrics I
Resource Economics 702
1. Consider the following model of the aggregate US production:
Yt AK t1 L2 Et3 M t4 exput ;
t
where: Yt is an index of total US output in year t;
Kt is an index of capital input for year t;
Lt is an ind
Key - Problem Set 6
Econometrics I
Resource Economics 702
1. The following model was specified to estimate the effects of human capital on U.S. wages. The data are
from the 2004 Current Population Survey and are available on the course website under Probl
Exam 2
Resource Economic 702
Econometrics I
This is a two hour exam with 100 points allocate your time accordingly. Spend no more than 1 minute per
point. Write answers in the space provided.
Part I: Choose 3 of 4 questions (45 points) from this section.
Key - Problem Set 1
Resource Economics 702
Econometrics I
1. Show or derive the following:
a. Show that the following three estimators are equivalent:
b1
X Y Y X
X X X
i
i
2
i
i
i
x y
x
i
x Y ;
x
i
2
i
i
i
2
i
where xi ( X i X ) and yi (Yi Y ) . (2 pts.)
MAD/LAD Estimator:
The minimum absolute deviations or least absolute deviations estimator is obtained by solving the following linear programming problem:
Min :
1LAD
yi 1LAD xi
=
( y
i
1LAD xi ) sgn ( yi 1LAD xi
)
;
where all variables are written in dev
Multicollinearity a simplified example: Assume that we have the following model: (1)
Yi = 0 +
i1 X i1 +
i 2 X i 2 + ui ;
where the two variables are linearly associated: (2) X i 2 = X i1 + vi .
The degree to which X1 and X2 are linearly associated depend
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