Why might you want to control for other factors in model

Assignment Help Microeconomics
Reference no: EM13882497

In 1985, neither Florida nor Georgia had laws banning open alcohol containers in vehicle passenger compartments. By 1990, Florida had passed such a law, but Georgia had not.

(i) Suppose you can collect random samples of the driving-age population in both states, for 1985 and 1990. Let arrest be a binary variable equal to unity if a person was arrested for drunk driving during the year. Without controlling for any other factors, write down a linear probability model that allows you to test whether the open container law reduced the probability of being arrested for drunk driving. Which coefficient in your model measures the effect of the law?

(ii) Why might you want to control for other factors in the model? What might some of these factors be?

(iii) Now, suppose that you can only collect data for 1985 and 1990 at the county level for the two states. The dependent variable would be the fraction of licensed drivers arrested for drunk driving during the year. How does this data structure differ from the individual-level data described in part (i)? What econometric method would you use?

Reference no: EM13882497

Questions Cloud

Determine the optimal solution point : Determine the optimal solution point. Determine the values by which the constraints c1 and c2 must decrease or increase in order to change the current solution point shown in the graph to the other extreme point.
Print out the sample genetic cross posted : Print out the sample genetic cross posted below the lab on launchpad to use as a guide. Below is a list of the phenotypes used in this lab.  These are all single gene traits that show complete dominance.  Use this information to set up and analyze yo..
Omission of the merchandise on consignment : 1. Determine the effect of the errors on retained earnings at January 1, 2013. Explain your answer. (Ignore income taxes.)
What is the effective annual yield of given compounded daily : Fred makes a deposit of £12,000 in a bank account. The deposit is to earn interest annually at the rate of 9% for seven years. What is the Effective Annual Yield of the above Compounded Daily?
Why might you want to control for other factors in model : Suppose you can collect random samples of the driving-age population in both states, for 1985 and 1990. Let arrest be a binary variable equal to unity if a person was arrested for drunk driving during the year.
Behavioral disorders and emotional disorders : Assignment: Behavioral Disorders. The most common childhood disorders tend to fall into one of two categories: behavioral disorders or emotional disorders. This assignment will focus on the behavioral disorders of childhood, which include the foll..
What impact would this hav on banking industry consolidation : Many regulators would like to see bank capital requirements raised. Consider a proposal to increase the minimum Tier 1 and total capital ratios to 9 percent and 12 percent, respectively. What impact would this have on bank risk? Would small banks and..
The company uses a perpetual inventory system. : 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2013.
Find the difference between the area of circular : The radius of a circular field is 7cm.Along with the field outside , 5cm wide circular fence was built , find the difference between the area of circular field and circular fence.The diameter of a circle is 80 cm. Find the area and circumference .

Reviews

Write a Review

Microeconomics Questions & Answers

  Solve the equilibrium price and quantity

Consider the following market supply and demand functions for onions:qs = 2.5ps, qd = 100 - 0.75pd - Solve this problem for the equilibrium price and quantity.

  What do you know about monetary policy

What do you know about monetary policy and What else does your chapter say about expansionary and restrictive monetary policy?

  Individual debt differs from government debt

List three ways in which individual debt differs from government debt. If all of the government's debt were internal, would financing the debt make the nation poorer? Explain your answer

  What are the four supply factors of economic growth

What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor?

  Calculate the marginal product of capital

Calculate the marginal product of capital

  Total revenue to total cost

Explain profit maximization from the following approaches: a. total revenue to total cost

  A firm can allocate the given advertising budget

Analyze the method by which a firm can allocate the given advertising budget between different media of advertisement.

  Consider the issue of minimum wage law

Consider the issue of minimum wage law: under which type of moral theory would such a law be justified most strongly? In what ways are utilitarian and capitalist notions of justice consistent? When do they differ? Using an example discuss the relativ..

  Explain the statement export its way out of trouble

An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to “ export its way out of trouble”.

  Curator of a museum that charges a fee to enter

"If you are the curator of a museum that charges a fee to enter and your boss wants you to increase revenue, what price change do you make?"

  Determine equilibrium price and quantity

The long run supply curve for a particular type of kitchen knife is horizontal line at a price of dolla three per knife. The demand curve for such a kitchen knife is

  Regarding incidences you found do you feel individuals must

unfortunately over the last several years there have been many examples of illegal and unethical business dealings some

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!

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