User Account

All Pages

What assumptions must hold for ols

Assignment Help Econometrics
Reference no: EM131131963

Consider the regression model of:

murderratet = β0 + β1 policebudgett + ?t

where murderratet is the annual murder rate in Fresno in year t, policebudgett is the annual police budget in Bakersfield. The data set available has one observation for each of the last 36 years.

(a) What assumptions must hold for OLS to give an unbiased estimate of the β1 the structural effect of increasing the police budget on the murder rate?

(b) Which of these assumptions is most likely violated if policebudgett, depends on murderratet-1?

(c) What assumptions must hold for OLS to give a consistent estimate of the β1, the structural effect of increasing the police budget on the murder rate?

(d) Which of these assumptions is most likely violated if policebudgett, depends on murderratet-1?

Reference no: EM131131963

Questions Cloud

Find contact information quickly when you need it : You should be able to store each person's name, phone number, and email address. The Contact Manager App should enable you to find contact information quickly when you need it.
How would you refute the claim : If you were a company faced with such a claim, how would you refute the claim? If you were the claimant, how would you support your claim?
How does this course relate to the real business world : According to Tony Wainwright, President of the Bloom Companies, "Perception is reality." How does perception affect consumer buying? Think about a very good or very bad experience you have had with a product. Discuss how the experience shaped you..
What factors help determine the market value of stock : What factors help determine the market value of stock?
What assumptions must hold for ols : What assumptions must hold for OLS to give an unbiased estimate of the β1 the structural effect of increasing the police budget on the murder rate
Which is the better investment common stock with a par value : Which is the better investment-common stock with a par value of $5 per share or common stock with a par value of $20 per share?
Calculate the weighted average cost of capital associated : Calculate the single break point associated with the firm's financial situation. Calculate the weighted average cost of capital associated with total new financing below the break point calculated in part. Calculate the weighted average cost of capit..
Write 8 sentences minimum on the film about hitler : Write one paragraph of 8 sentences minimum on the film about Hitler;- what is your assessment of Dr. Langer's work;
Are there any market trends that you will be capitalizing on : Are there any market trends that you will be capitalizing on? Discuss Online and Internet market trends and how you will leverage them? Has there been any growth in the market? Please provide specifics.

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd