Stock/Watson - Introduction to Econometrics - 3rd Updated Edition - Answers to Empirical Exercises
1
_
Empirical Exercise 10.2
Calculations for this exercise are carried out in the STATA file EE_10_2.do.
The solutions will reference the following regressi

ECON 122B
Sample Final Exam
1. Your friend told you that rental prices in Irvine are high because there are a lot of students in
Irvine. You would like to see whether a stronger presence of students affects rental rates.
a. List variables that in your opi

Econ 161B: International Money
Winter 2017: Jenkins
Name:
ID:
Exam 2 Version B
Instructions: Use complete sentences and label all diagrams carefully. You may use a calculator
but you may not use any other outside materials: smartphones, scratch paper, etc

Econ 161B: International Money
Winter 2017: Jenkins
Name:
ID:
Exam 1 Version B
Instructions: Use complete sentences and label all diagrams carefully. You may use a calculator
but you may not use any other outside materials: smartphones, scratch paper, etc

Econ 161B: International Money
Winter 2017: Jenkins
Name:
ID:
Exam 1 Version A
Instructions: Use complete sentences and label all diagrams carefully. You may use a calculator
but you may not use any other outside materials: smartphones, scratch paper, etc

Econ 161B: International Money
Winter 2016: Jenkins
Name:
ID:
Final Exam
Instructions: Use complete sentences and label all diagrams carefully. You may use a calculator
but you may not use any other outside materials: smartphones, scratch paper, etc. Ther

ECON 122B
Winter 2017
Midterm II
You work for a real estate company and you are asked to estimate the value of houses in two
neighborhoods: one bordering a large university, and one a neighborhood about three miles from the
university. You collect the dat

Lecture 1 Review: The Simple Linear Regression
What is econometrics?
Econometrics is about using data to estimate and test economic relationships
(existence, sign and magnitude) and make inference:
What is the impact of class size on students perfor

Lecture 3 Nonlinear regression functions
The previous lecture reviews multiple regression models
Y 1 X 1 2 X 2 . k X k u
This lecture further discusses nonlinear regression functions of (X or Y), including
log models, quadratic forms, and models with

Lecture 6 Regression with panel data
What is Panel Data?
Panel data are data collected by following the same group of survey subjects over
time. A panel dataset contains observations on the same group of survey subjects
repeatedly over time. Panel dat

Lecture 6 Instrumental Variable Regression
When to Use Instrumental Variables?
Instrumental Variables (IV) estimation is used when your model has
endogenous Xs
That is, whenever Cov(X,u) 0
IV can be used to address the endogenous regressor (or en

Lecture 2 Review: Multiple Regression Analysis
In a simple linear regression with one dependent variable and one independent
variable, we have to assume that all other factors determining Y are uncorrelated
with X to obtain unbiased coefficient estima

Stock/Watson - Introduction to Econometrics - 3rd Updated Edition - Answers to Empirical Exercises
1
_
Empirical Exercise 11.2
Calculations for this exercise are carried out in the STATA file EE_11_2.do.
Results in this table are referenced in the answers

Stock/Watson - Introduction to Econometrics - 3rd Updated Edition - Answers to Empirical Exercises
1
_
Empirical Exercise 8.2
Calculations for this exercise are carried out in the STATA file EE_8_2.do.
This table contains the results from seven regression

Stuff I Need to Know for The Final
This guide represents everything you need to know for the upcoming exam. The exam is
cumulative, but most material will be from Chapters 5-12. Particularly heavy emphasis will
be on Chapters 8-12, which is material from

Econ 371
Practice Exam #3
Multiple Choice (5 points each): For each of the following, select the single most appropriate
option to complete the statement.
1) The interpretation of the slope coefficient in the model ln(Yi )
ui is as
0
1 ln( X i )
follows:

Econ 161B: International Money
Winter 2016: Jenkins
Final Exam Key
1. (a) Arbitrage is the process of buying and selling items with the objective of making profit
from known differences in prices.
(b) Covered interest parity (CIP) means that the current s

Econ 161B: International Money
Winter 2017: Jenkins
Name:
ID:
Exam 2 Version A
Instructions: Use complete sentences and label all diagrams carefully. You may use a calculator
but you may not use any other outside materials: smartphones, scratch paper, etc

ECON 122B
Sample Final Exam
1. Your friend told you that rental prices in Irvine are high because there are a lot of students in
Irvine. You would like to see whether a stronger presence of students affects rental rates.
a. List variables that in your opi

ECON 1223
Practice Problem I!
We would like to investigate if job training grants can reduce firm scrap rates.
Data consists of 54 firms in Michigan over 3 years : 1987-1989. The dataset includes the following
variables: logarithm of scrap rate, indicator

ECON 15B
Sample Final Exam
1. The data for n = 24 points were subjected to a simple linear regression with the results:
and
(20 points).
a. Is the slope coefficient statistically significant?
i.
Specify the null and alternative hypothesis.
ii.
Specify the

Econ 161B: International Money
Winter 2017: Jenkins
Practice Problems
Short-Run Exchange Rate Determination
1. Short-run determination of exchange rates I. Answer the following question
about the short-run determination of the exchange rate between the In

Econ 161B: International Money
Winter 2017: Jenkins
Practice Problems
External Wealth and the Intertemporal Budget Constraint: Solutions
1. The long-run budget constraint:
(1 + r )W1 +
1 + r
r
Q =
1 + r
r
C
(1)
which means:
r W1 + Q = C
(2)
Then:
(a) No.

Econ 161B: International Money
Winter 2017: Jenkins
Exam 2 Version B Key
1. (a) Compute:
GN E = C + I + G = $1900 billion.
(1)
GDP
(2)
= GN E + T B = $1700 billion.
GN I = GDP + N F IA = $1750 billion.
GN DI = GN I + N U T = $1730 billion.
(3)
(4)
(b) Com

Econ 161B: International Money
Winter 2017: Jenkins
Practice Problems
Exchange Rates and Arbitrage
1. Spot market transactions. Suppose that you can make foreign exchange transactions at the following spot rates involving the US dollar (USD), the British

Econ 161B: International Money
Winter 2017: Jenkins
Exam 1 Version A Key
1. (a) 1.5 e/
(b) Convert $1000 U115, 000 1, 210.53 $1, 513.16
e
(c) E$/
=2
2. (a) The US dollar appreciated relative to the basket of currencies by about 66% between
January 1973 an

Econ 161B: International Money
Winter 2017: Jenkins
Practice Problems
External Wealth and the Intertemporal Budget Constraint
1. You may assume N U T = 0, KA = 0, G = 0, I = 0. Suppose that a country produces
Q units of output per year and consumes C unit

Econ 161B: International Money
Winter 2017: Jenkins
Practice Problems
Balance of Payments
1. International accounting I. Consider the following information about some country
called Country A for 2014:
Indicator
Consumption
Government Purchases
Investment