Tutorial 3, Econometrics 2
Dr Dimitris Korobilis
February 24, 2014
1 Exercise 9.2
The le t ext i t ex92 .d at contains 105 weekly observations on sales revenue (SALES)
and advertising expenditure (ADV ) in millions of dollars for a large midwest departmen
Tutorial 1, Econometrics II
Exercise 6.4
Consider the wage equation
ln WAGE 1 2 EDUC 3 EDUC 2 4 EXPER 5 EXPER 2
+ 6 ( EDUC EXPER) 7 HRSWK e
where the explanatory variables are years of education, years of experience, and
hours worked per week. Estimation
Econometrics 2, Tutorial 2
(a) Interpret the estimated equation.
Solution: When a GPA is increased by one unit, and other variables are held
constant, we estimate that the average starting salary is estimated to increase by
the amount $1643 (t = 4.66, and
Tutorial 2, Econometrics 2
Dr Dimitris Korobilis
January 27, 2013
1 Exercise 7.1
An economics department at a large state university keeps track of its majors
starting salaries. Does taking econometrics affect starting salary? Let SAL =
salary in dollars,
Tutorial 1, Econometrics II
Dimitris Korobilis
Exercise 6.4
Consider the wage equation
ln (W AGE) =
1
+
+
2 EDU C
6 (EDU C
+
3 EDU C
2
EXP ER) +
+
4 EXP ER
7 HRSW K
+
5 EXP ER
+e
where the explanatory variables are years of education, years of experience,
Tutorial 4, Econometrics 2
Dr Dimitris Korobilis
March 11, 2014
1 Exercise 15.1
This exercise uses data from the paper: Zhenjuan Liu and Thanasis Stengos,
"Non-linearities in Cross Country Growth Regressions: A Semiparametric Approach," Journal of Applied
Q2.
STATA Code:
reg mathpassrate four_h_rate
Note that reg is the command of linear regression
Regression with robust standard errors:
reg mathpassrate four_h_rate , vce(cluster countynum)
reg mathpassrate four_h_rate year2-year5, vce(cluster countynum)
Q
Tutorial 3, Econometrics 2
Solution: Overall, advertising has a positive impact on sales revenue. There is a
positive effect in the current week and in the following two weeks, but no effect
after 3 weeks. The greatest impact is generated after one week.
Econometrics 2, Tutorial 4
Solution: The negative coefficient of POP suggests that countries with higher
population growth trended to have lower growth in per capita GDP. The
increasing population has not led to a more than compensating gain in GDP,
leadi