Final Exam
Economics 312
Instructor: James J. Heckman
June, 2007
1. (25 pts.) Consider the panel data model:
Yit = Xit + Fi + Uit
for i = 1, . . . , I persons, t = 1, . . . , T time periods (T 2). The
Selected Final Exam Solutions
1
Econ 312 - Spring 2007 - James Heckman Problem 1
(f) The control function approach can completely identify the parameters of the Roy model with the assumptions which ar
Question 3
Rodrigo Pinto
Econ 312
July 17, 2007
1
Question 3
The Economic Model:
max u1 (X1 ) + u2 (X2 )
s.t.P1 X1 + P2 X2 Y
max X1 + bX2
s.t.X1 + P X2 Y
2
The marginal rate of substitution and the i
ECON 312
Solutions to Final, Question 1 (a)-(e)
Benjamin Moll - [email protected]
Question 1
Some general comments applying to all subquestions:
The key in all questions is to be comfortable with ar