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Can anyone help me answer these question for econometrics? Its urgent, Thank you so much! ECN140 Final 2019 Winter 1. In this question we use

Can anyone help me answer these question for econometrics? Its urgent, Thank you so much!

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ECN140 Final 2019 Winter 1. In this question we use the 1980 U.S. Census and we are interested in the effect of fertility on labor supply. (In other word, we are interested in how much a woman's labor supply falls when she has an additional child.) We focus on married women aged 21-35 with two or more children. We use the following three variables: weeksm 1, morekids , and samesex . The variable weeksm 1 is the number of weeks for which the woman worked in 1979. The variable morekids is a binary variable equal to 1 when the woman has more than 2 kids and 0 otherwise. The variable samesex is a dummy variable equal to 1 when the first two children are of the same sex (boy-boy or girl-girl) and 0 otherwise. The summary statistics for these variables are as follows. summarize weeksml morekids samesex Variable Obs Mean Std. Dev. Min Max weeksm1 254,654 19.01833 21.86728 52 morekids 254.654 3805634 4855263 samesex 254,654 5055683 49997 corr weeksml morekids samesex (obs=254,654) weeksml morekids samesex weeksm1 1.0000 morekids -0.1196 1.0000 samesex -0.0097 0.0695 1.0000 (a) (10 points) What is the estimated expected value of weeksm 1 for the women with two children?ECN140 Final 2019 Winter (b) (5 points) Consider weeksm 1 = Bo + B, morekids + u. Suppose that the correlation between morekids and u is not zero, but that the correlation between samesex and u is zero. What is the instrumental variable estimate for BI? (c) (5 points) Come up with a reason why morekids can be endogenous.2. In this question, we are interested in the effect of completed schooling years on wages. We use a panel dataset about 707 young women, surveyed in 1970 and 1980. ' We use the following two variables: wage, and grade. The variable wage is the wages (divided by the GNP deflator). The variable grade is the current grade completed (ie., the years of completed education). (a) (10 points) Use the observations with year = 1970. Consider log(wage) = Po + Bigrade + Bygrade? + u and E[u | grade] = 0. Consider the claim that the effect of grade is zero. Based on the following Stata outputs with some blank entries, write down the test statistic and the critical value. What is the conclusion of the test? In this question, use the significant level a = 5%. gen In_wage = log(wage) gen grade_sq = grade-2 summarize In_wage grade if year == 70 Variable | Obs Mean Std. Dev. Min Max In_wage 707 1. 50342 4092185 . 0240972 2.683358 grade | 707 11. 94201 1. 88952 18 tab year interview year Freq. Percent Cum . 70 707 50.00 50.00 80 707 50.00 100.00 Total | 1,414 100.00 . reg In_wage grade grade_sq if year == 70 Source | SS df MS Number of obs F (2, 704) Model | 18.7151068 2 9.35755342 Prob > F Residual | 99.5115005 704 . 141351563 R-squared Adj R-squared Total | 118.226607 706 . 167459784 Root MSE In_wage Coef. Std. Err. t P>It| [95% Conf. Interval] grade | -. 0033106 0341627 grade_sq 0038525 0014723 _cons | 9798049 . 2040265 This dataset is an extract from National Longitudinal Survey., which consists of women 14-26 years of age in 1968.ECN140 Final 2019 Winter (b) (10 points) Use the observations with year = 1970. Consider log(wage) = Po + Bigrade + Bagrade? + u and Elu | execs] = 0. Consider the claim that the effect of grade on log(wage) becomes larger as the number of grade becomes larger. Based on the above Stata outputs with some blank entries, write down the test statistic and the critical value. What is the conclusion of the test? In this question, use the significant level a = 5%

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