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6. Consider the following model and regression output. InPoverty4caluc=0+Pheduc1+wi=0+1MinAge4+v1 reg InPoverty edve reg educ Minkige ivregrean 2nls InPoverty (educ-Minhge) [Note: this is 2 SLS coenand
6. Consider the following model and regression output. InPoverty4caluc=0+Pheduc1+wi=0+1MinAge4+v1 reg InPoverty edve reg educ Minkige ivregrean 2nls InPoverty (educ-Minhge) [Note: this is 2 SLS coenand and output where predicted_ed are the predictiona of education based on the firat stagel where InPoverty is a dummy for whether person i is in poverty, edue is years of education, MinAge is the minimum age at which someone can drop out of high school, and u,v are unobservable terms, with E(ucduc)=0,E(uM in Age )=0, and E(vAlnAgc)=0. i. What is the endogenons variable in this setup? (3pts) ii. What is our estimate for 1in I want a number here: (4pts) iii. Is our estimate for 1iv statistically significant? (3pts) iv. Does MinAge satisfy the requirements of an instrument? Why or why not? (5pts) v. If we estimated the reduced form, what would our point estimate be? I want a number or a formula with numbers in it. (3pts)
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