Introduction to Econometrics: Problem Set #1
Abdul G Noury
February 2013
Problem 1
Answer the following questions about Econometrics:
What is Econometrics?
What are its main goals?
Explain the traditional Methodology of Econometrics.
How is Econometri
Introduction to Econometrics: Problem Set #11
Abdul G Noury
May 2013
Problem 1
When the error in a regression model have AR(1) serial correlation, is it always
true that the OLS stander errors are too small?
How can we detect serial correlations in a re
Introduction to Econometrics: Problem Set #10
Abdul G Noury
April 2013
Problem 1
What do we mean by stationarity?
Why does non-stationarity pose problem? Describes two important ways that
the data can be non-stationary and the problems that non-stationa
Introduction to Econometrics: Problem Set #8
Abdul G Noury
April 2013
Problem 1
Using WAGE2.DTA, we want to examine the determinants of earning high income.
High income is a dummy variable indicating whether wage is above the average
(hiwage = wage > 957)
Introduction to Econometrics: Problem Set #7
Abdul G Noury
April 2013
Problem 1
Consider the model yi = 0 + 1 xi1 + 2 xi2 + ui for group 1, and yi = 0 + 1 xi1 +
2 xi2 + ui for group 2.
Suppose that 1 = 1 and 2 = 2 , which specication would you use to run
Introduction to Econometrics: Problem Set #6
Abdul G Noury
March 2013
Problem 1
Consider the following model:
y = 0 + 1 x1 + 2 x2 + u
Suppose you rescale the data and regress y , on c1 x1 and c2 x2 , where cj s are constants.
How would this rescaling aect
Introduction to Econometrics #5
Abdul G Noury
March 2013
Problem 1
In this problem we want to show how the omitted variable bias can be computed.
Using data in WAGE2.dta, do the following:
Compute the unbiased coecients by running a regression of wage on
Introduction to Econometrics: Problem Set #4
Abdul G Noury
February 2013
Problem 1
Suppose you have a simple regression model: y = 0 + 1 x + u.
What are the consequences of excluding the intercept, 0 , on 1 , the residuals,
and R2 ? Regarding the eect on