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You would like to estimate the effect of police size on city-level crime on a cross-section of cities. A regression of crime rate on policesize (per population) gives an estimate of 0. Suppose that people make their city increase police size if crime increases for some otherreason.
(a) Does that lead to a bias the OLS estimates for the causal effect of police size on crime? Explain.
(b) Does the estimated 0 coefficient mean that police size has no effect on crime?
(c) What assumptions should a valid IV satisfy in this case?
(d) Do you think electoral cycles can serve as a valid instrument (assuming incumbent city governments spend more on police in election years, ceteris paribus)? Why or why not?
Due to a manufacturing error, a parasitic resistance Rp has appeared in series with the source of M1 in Fig. 11.65. Assuming λ = 0 and neglecting other capacitances, determine the input and output poles of the circuit.
There are many potential buyers for used cars. All of them are willing for pay $1000 for a lemon and $2000 for a good used car. There are 1000 owners of lemon and 1000 owners of good used car.
Evaluate each question, explaining in 2 sentences per question why each of these questions is problematic. In the course of criticizing each question, demonstrate your knowledge of several key features of Chinese religious culture. Be sure to give..
Two firms control the entire market for gasoline. They both have identical marginal costs of $1/gallon. The inverse demand for a gallon of gasoline is given by P(G)=10-1.5G. If the two firms decide to collude, and share the profits.
Why would increased spending as a percentage of GDP on, say, household appliances or education in a particular economy be regarded as economically desirable. Why, then, is there so much concern about rising expenditures as a percentage of GDP on h..
This would cover years 4 and 5, after the manufacturer's warranty has expired. Suppose that the expected repair costs for years 4 and 5 are $850 per year. If your discount rate is 5.5% per year, should you purchase the extended warranty.
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..
We have three variables, Information is 2000-2005. I use OLS to Determine the model and get a standard result.
find the following values for a single cash flowa the future value of 500 invested at 8 percent for one yearb the
Generate new variables for the growth of the real GDP (at constant prices), the growth of labor force and the ratio between external debt and real GDP.
1. suppose there is an increase in supply rightward shift in supply. consider two graphs. in graph x demand is
According to the profit-maximization goal, the firm should attempt to maximize short-run profits since there is too much uncertainty associated with long-run profits.
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