Problem Set 1
12/22/2014
1. (i) There are 1388 women in this sample. 212 women report smoking during pregnancy.
(ii) The average number of cigarettes smoked per day is about 2 cigarettes. This average is not a
good measure of the typical woman in this cas

ECN 644 - Empirical Analysis II
Summer 2016
Problem Set 5
Solutions
1. With V ar(ujinc; price; educ; f emale) = 2 inc2 ; h(x) = inc2 ,pwhere h(x) is the heteroskedasticity function dened in equation (8.21). Therefore, h(x) = inc; and so the
transformed eq

Additional Practice Questions for the Midterm
Beta Coefficients:
The dataset HPRICE2.dta include data from a sample of 506 communities in the Boston area
with median housing price (price), amount of nitrogen oxide in the air in parts per million (nox),
we

/* Data script for setting up and running gravity model (Problem 6 in Assingment
2)*/
/*b merge and prepare the data */
/*I have created separate dta files with values for exports, distance, GDP and
language*/
/*start with exports dataset - set your own d

Econ 644 Summer 2016
Sample Final Exam
The dataset SMOKE.dta (in Files) contains information on smoking behavior for a random
sample of 807 individuals. The variable cigs measures the number of cigarettes smoked per day.
Review the labels of the remaining

ECN 644 - Empirical Analysis II
Summer 2016
Problem Set 3
Solutions
1. Wooldridge textbook, 4 in Chapter 6 of the 5th Edition.
(a) Holding all other factors xed we have:
log(wage) =
1
educ +
2
educ pareduc = (
1
+
2 pareduc)
educ
Dividing both sides by ed

ECN 644 - Empirical Analysis II
Summer 2016
Problem Set 2
Solutions
1. Wooldridge textbook, 7 in Chapter 4 of the 5th Edition.
(a) While the standard error on hrsemp has not changed, the magnitude of the coe cient has increased by half. The t statistic on

ECN 644 - Empirical Analysis II
Summer 2016
Problem Set 4
Solutions
1. Wooldridge textbook, 1 in Chapter 9 of the 5th Edition.
There is functional form misspecication if 6 6= 0 or 7 6= 0; where these are the
population parameters on ceoten2 and comten2 ,

ECON 644
Problem Set 3
January 12, 2015
1. Log
2. A constant of -$1.55 was produced, indicating that if none of the included variables existed,
an individuals hourly wage, on average, would be -$1.55. The constant is more of a tool to
make predictions, th

Problem Set 2
ECON 644
1.
Mean.
Standard Deviation. Unit of Measure. Observations
psoda.
1.045
.089
Dollars.
402
prpblck.
.113
.182
Percentage
409
income
47053.78
13,179.29
(1000s)Dollars.
409
2. Log
3. Log; the constant value .96 produced by the regressi

ECN 644 - Empirical Analysis II
Summer 2016
Problem Set 6
Solutions
1. Wooldridge textbook, C1 in Chapter 17 of the 5th Edition.
(a) If spread is zero, there is no favorite, and the probability that the team we (arbitrarily) label the favorite should have