Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON
301

Econometrics

Fall
2013
Homework
Assignment
2

Due
on
September
23
(in
class)
1.
Let
kids
denote
the
number
of
children
ever
born
to
a
woman,
and
let
educ
denote
years
of
education
for
th
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 325 International Trade
Homework 3
Due November 29, 2013
1. Consider a small country applying a tariff t to imports of a good.
a) Suppose that the country decides to reduce its tariff to . Draw the graphs for the Home and import
markets and illustrat
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Review Questions: Final Exam
Review Questions: Exam 1
Review Questions: Exam 2
Review Questions for New Material
1. Suppose you have information on male and female workers in a company, and you wish to estimate the
effects of workplace experience on salar
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 301  Econometrics  Fall 2013
Homework Assignment 3  Key
1. Median starting salary for new law school graduates is determined by
(
)
(
)
(
)
,
where LSAT is the median LSAT score for the graduating class, GPA is the median college GPA for the class
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 301  Econometrics  Fall 2013
Homework Assignment 4 Key
1.
Consider the estimated equation that studies the effects of skipping class on college GP A:
(.33)
(.094)
( .011)
(.026)
n = 141, R2 = .234.
(i)
Using the standard normal approximation, find
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 325 International Trade
Homework 2
Due November 7, 2013
1. Suppose that computers use 2 units of capital for each worker, so that = 2 , whereas
shoes use 0.5 units of capital for each worker, so that = 0.5 . There are 100 workers
and 100 units of cap
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 325 International Trade
Homework 3
Due November 29, 2013
1. Consider a small country applying a tariff t to imports of a good.
a) Suppose that the country decides to reduce its tariff to . Draw the graphs for the Home and import
markets and illustrat
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
The Economics of Financial Markets (Spring 2014)
Problem Set 2 (due on Wednesday 5 February 2014)
Please type your answers and submit them through Moodle.
Question 1. (Returns, 6 points). (a) Calculate the net simple return of ABC Co. between 2011
and 201
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 325 International Trade
Homework 1
Due September 24, 2013
1. Suppose that each worker in the Home country can produce three cars or two TVs. Assume that
Home has four workers. Suppose that each worker in the Foreign country can produce two cars or
th
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Answer to part h) of the review question 1.
1. Home has 1200 units of labor available. It can produce two goods, apples and bananas. The MPL in apple
production is 3, while in banana production it is 2. Foreign has 800 units of labor. Foreigns MPL in appl
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 325: International Trade
Review Questions
1. Consider a small country applying a tariff t. Instead of a tariff on all units imported, suppose
that the tariff applies only to imports in excess of some quota amount M, which is less than
the total impor
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 325 International Trade
Review Questions: Chapters 5, 6 and 7
1. In the shortrun specific factors model, consider a decrease in the stock of land due to
natural disaster. What is the effect of this change in land on the quantity of labor in each
ind
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON
301

Econometrics

Fall
2013
Homework
Assignment
3

Due
on
October
25
(in
class)
1.
Median
starting
salary
for
new
law
school
graduates
is
determined
by
log = ! + ! + ! + ! log
( ) + ! log
( ) + ! + ,
where
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
MULTIPLE REGRESSION ANALYSIS: STATISTICAL INFERENCE, PART I Introductory Econometrics: A Modern Approach, 5e SouthWestern, Cengage Learning Jeffrey M. Wooldridge 1. Sampling Distributions of the OLS Estimators 2. Testing Hypotheses About a Single Populat
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Outline
1
About this part of the course
2
Financial investments
3
Returns
4
Portfolios
Zaier Aouani
5
Arbitrage
School of Humanities and Social Sciences
Nazarbayev University
6
Law of One Price
7
Arbitrage/Law of One Price illustration: PutCall parity
8
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Key Issues
The economic function of a nancial market is to increase the
eciency with which individuals can engage in mutually benecial
intertemporal exchanges with other individuals.
The Economics of Financial Markets
Chapters 1 and 2
Introduction
In the
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
The Economics of Financial Markets (Spring 2014)
Problem Set 3 (due on Tuesday 11 February 2014)
Please type your answers and submit them through Moodle.
Question 1. (Call and put options, 6 points).
In this question you are asked to test putcall parity
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
CSci 111: Web Programming and Problem Solving
Spring 2013
Homework Assignment #3
Due date: 4 February, 23:55
The assignment requires you to gather data, generate graphs, and write a report as a web page. This
brief web report will test your skills in Exce
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON 301  Econometrics  Fall 2013
Homework Assignment 2  Key
1.
Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A
simple model relating fertility to years of education is
where u is the
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Review Questions: Exam 2
1. Consider the following multiple regression model where the classical assumptions about the error
term hold:
yi = 0 + 1 xi1 + 2 xi 2 + ui
Describe in detail how you would test the following hypotheses using a t or F test as appr
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Review
Questions
for
Exam
1
1.
Consider
two
random
variables
X
and
Y
which
have
the
following
joint
probability
distribution:
Y
X
0
1
0
1/3
1/2
1
0
1/6
a)
Find
the
marginal
probability
distribut
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON
301

Econometrics

Fall
2013
Homework
Assignment
5
key
The answer key is for the questions 2 and 3 only. We did questions 1, 4, and 5 in class.
2.
Use
the
data
in
WAGE2.RAW
for
this
exercise.
(i) Estimate
the
model
log
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
The Economics of Financial Markets (Spring 2014)
Problem Set 3 (due on Tuesday 11 February 2014)
Please type your answers and submit them through Moodle.
K
Answer 1. (a) The putcall parity condition is C0 + 1+Rf = S0 + P0 . For Rf = 0 and S0 = 500.74,
we
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
The Economics of Financial Markets (Spring 2014)
Problem Set 2 (due on Wednesday 5 February 2014)
Answer 1. (a) Net simple return Rt,t+2 =
The geometric average return per year is
g
Rt,t+2 =
1 + Rt,t+2 1 =
(b) Nominal net simple return is
Real net return
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
ECON
301

Econometrics

Fall
2013
Homework
Assignment
1
Answer
Key
1.
A
fair
coin
is
tossed
4
times
and
the
outcome
recorded
for
each
toss.
Complete
the
following:
a.
List
out
the
possible
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
Chapter 1
Investments: Background and Issues
1.
a. Cash is a financial asset because it is the liability of the federal
government.
b. No. The cash does not directly add to the productive capacity of the
economy.
c. Yes.
d. Society as a whole is worse off
Kazakhstan Institute of Management, Economics and Strategic Research
ECON 111

Spring 2014
MULTIPLE REGRESSION ANALYSIS: OLS ASYMPTOTICS Introductory Econometrics: A Modern Approach, 5e SouthWestern, Cengage Learning Jeffrey M. Wooldridge Recap 1. Consistency of OLS 2. Asymptotic Normality and LargeSample Inference
1
Recap
We have studied th