Differences in discount rates across individuals

Assignment Help Econometrics

Reference no: EM131135921

Consider the model presented in Section 10.2 and suppose that the effective discount rate r varies across individuals (e.g., because of credit market imperfections). Show that individuals facing a higher r would choose lower levels of schooling. What happens if you estimate the wage regression similar to (10.12) in a world in which the source of disparity in schooling is differences in discount rates across individuals?

Reference no: EM131135921

Questions Cloud

Describe the various steps you would take in conducting : Assume you are consulting and you have been asked to conduct a comprehensive assessment to determine the training and development needed to elevate the performance of 25 employees in a sales support call center.

Do you support or are you against a national healthcare plan : Do you support or are you against a national healthcare plan and why and Is there a particular healthcare plan (IN U.S.A) that you favor over another ?

About her relationship with another man : Explain whether each of the following losses would be covered under Section II in the homeowners policy. If the loss is not covered, explain how coverage can be obtained.

Compare your spreadsheet’s solution to the answer : Modify the spreadsheet in Sidebar 5-1 to handle recovery periods up to 10 years. Test your spreadsheet by entering the data from Example 5-1 and Problems 1 and 2. Compare your spreadsheet’s solution to the answer to these problems.

Differences in discount rates across individuals : What happens if you estimate the wage regression similar to (10.12) in a world in which the source of disparity in schooling is differences in discount rates across individuals?

Was reiss successful : Was Reiss successful?- How much capital does Reiss risk to pursue the opportunity?- Why does Reiss risk so little capital?

Summarize the current organizational training program : Explain why you believe the organization's current training model is effective or ineffective Present an idea for a new training program or component to the existing training program which would promote employee engagement.

The oasdi program pays disability benefits : The OASDI program pays disability benefits to a disabled worker and eligible family members. Explain whether each of the following persons would be eligible for disability-income benefits.

How does illegal immigration influence the u.s. economy : How to Hone Your Thesis: It is important that you start your research early in this course. Try to find the most important contemporary questions and theories in your field of study and then align the most important questions with a very specific ..

User Account

All Pages