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Question: Can the regression that you suggested in response to given problem be used to estimate the effect of gender on an individual's earnings? Can that regression be used to estimate the effect of the national unemployment rate on an individual's earnings? Explain.
Problem: A researcher is using a panel data set on n = 1000 workers over T- 10 years (from 2001 through 2010) that contains the workers' earnings, gen-der, education, and age. The researcher is interested in the effect of education on earnings. Give some examples of unobserved person-specific variables that are correlated with both education and earnings. Can you think of examples of time-specific variables that might be correlated with education and earnings? How would you control for these person-specific and time-specific effects in a panel data regression?
Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 2. Now suppose that there is full trade in goods and assets in every period. Find new expressions for the riskless interest rates (call these rift, for "free trade"). Do the interest rate..
Explain the structure and function of the Federal Reserve System - You are the Federal Reserve Police and you go into Uckville Bank. When you check the vault you see $90,000 . The resevrve requirement is 6% and on the books are $1,750,000 in outsta..
Say that the coal energy market has a negative externality. Should the government impose a tax or subsidy in this market? Describe why by referring to the social and private curves (using the relevant cost or benefit curves).
1. which of the following best illustrates the concept of the fact that people respond to incentives? jordan is
part-1assume that country a has a population of 500000 and only produces one good-cars. country a produces 100000 cars
1. A firm in a perfectly competitive market that is in long run equilibrium is contemplating raising the price of its good so that it can make positive economic profits. Which of the following statements is correct?
In light of your answers in (a)-(d), what is the Nash equilibrium of this price setting game between Shell and Mobile?
Just prior to signing the contract, a manager reads that one of TRW's competitors has introduced a comparable airbag using a new technology that reduces the cost by 30 percent. How would this information affect Honda's optimal contract length with..
What effect does unanticipated inflation have upon: (1) individuals who are retired and living on a fixed income; (2) debtors, and (3) creditors?
You have been hired by a local used car dealer to help in their pricing of used cars. then what the estimated coefficients mean for each of these regressions.
Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $10 million to $20 million between one year and the next.
Suppose a CEO goal is to increase profitability and output from her company by bolstering its sales force and that it is known that profits as a function of output are P=40q-2q2 (in millions of US dollars) Graph the profit function. Compare and co..
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