CHP Part 1 You are interested in the determinants of working women having children under the age of 6. The decriptive statistics by age group are in Table 1. The variable didatt, educ, and age are curent variables repetenting number of kids under 6, education, and age. The variables hours and fashrs are continuous variabiles reporting, bours worked and hours worked by hasband. I OLS was used to estimate the model, the estimating equation would be 1) kidat, -+ B+ ryhura+ Each number should be considered an independent otion stated otherwise Table 1 Descriptive Statistics by Ap Group Age Group 30 to to 000 Total N (pam) 208 (5) 257 3701 153 (226) 675 000 comes in Hon W/(w) 786.000 (06) 2017 (630 609.64.95 946.565 (66 Worland/or bestu () 2309389.36 2.0 (T.SK.es.com IASI (S.C. ** decree nam Number of Kuman ( 0.00 0.6810 10.2001 2013 (114) 0.250 0.516) Educatica () 12519 (2201) 12-261 09.2001 TL 2.535) 17.265 (2.200 3424 (2.314 An of Woman (d) 447 (2.734) L THA HAI 12.635 (R) Station the bathroom 1. (TFU) Achat note that mother's education (rond) of each individual could be a good instrument for de although it could becometed with error ter into (1) You do show that edut and made are strongly correlated. Suce medic) O is lily true, you should we OLS 2. We want to estimate a Probit model instead OLS, Write down the latent variable model for equation (1) Be specific to the informationen We have estimated the model described in 2 and the results we Calculate the partial effect at the average for Figure 1: Red robit Iteration of log Helthood -28.46693 Iteration 11 log likelihood --225.76726 Iteration 2: log likelihood --222.22262 Iteration 31 log likelihood -222.15762 Iteration : log likelihood -222. 1572 Number of obs 678 Prebit repression Log likelihood --222.15762 Coef kids to! Std. Err. (95% Conf. Intervall * PI! educ .6273265 hour's -.0005953 age -. 120asa -.00.222 cons 4.411773 .6307256 .6060917 .e111689 .6001189 .6910511 0.89 -6.49 -10.60 -1.67 6.40 0.34 0.000 2.000 ..062 8.000 -.0329009 .600775 -.1422915 .200455 3.676937 .6875530 .6004157 .0952261 .6990111 5.746685 hashrs 1 here and shrs for the group to 39 ind 0 to Show work. Using the information in 2 and 3, what is the partial effects the average for a woman in the sample that has high school education (educins someone with 11 yees of education (educ.) 2 5. Using the information in 2 and 3, test the hypothesis that 8BBs = . Show work and explain. 6. Using the information in 2 and 3, calculate the psuedo R-squared. Show work and explain 7. You have decided to revert back to using kids as a discrete variable. Setup a Heckman Selection Model asuming that age meets the exclusion restriction. Provide an adequate explanation with steps and be specific to the information given. How would you determine whether selection is a problema? Part II Suppose you have data on fatality rates frate from traffic accidents for 100 districts in the years 2012, 2014, and 2018. The determinants (regressos) are alcohol tax revenue (a), average high school graduation rate (grade), and average unemployment rate (unemplos. Note that we also need binary variables representing the year in the model. frate=6+T agrade+Bunemploy+D+De+de (2) The variable o, is the underved district heterogeneity. Treat number is an individual questions unless otherwise specified Pachwumber should be considered an independent question des stated otherwise. (TFU) Since we can not account for din, in the model, the unobserved district will cause bis in the estimates if we estimate pition (2) Archer at that the observed district heterogeneity (dis) is correlated with Setup a mode that would contently estimate the effect on frate Chint: First Difference). Be sure to state required sumption and show procedures to stimating equation. The same researcher notes that heteroticity may also be a problem in the model you setup in 2. Setup a es that es nonlinearites to show whether the researcher could possibly be correct. Be specific and explain 4. Suppose the searcher was correct in 3 and you must adjust for heterosedlasticity (this should not affect your answer in 3). Set up a model that corrects for heterosedlasticity. Be specific to the information given and explain 5. In 2016, a w program was initiated by some districts controlled by the AA political party. The AA party decided restrict the time individual 21 years old or younger can drive. The AA party believes young drivers are the primary cause of accidents so they restricted the time they can legally drive to between 06:00-22:00 Setup a model to analyze the new policy using equation 2 as the base (hint: Dull-in-Diff). Explain and be specific & (TFU) Without using the method in 5, you will over estimate the policy effect of the wew restriction if you and First Difference instead CHP Part 1 You are interested in the determinants of working women having children under the age of 6. The decriptive statistics by age group are in Table 1. The variable didatt, educ, and age are curent variables repetenting number of kids under 6, education, and age. The variables hours and fashrs are continuous variabiles reporting, bours worked and hours worked by hasband. I OLS was used to estimate the model, the estimating equation would be 1) kidat, -+ B+ ryhura+ Each number should be considered an independent otion stated otherwise Table 1 Descriptive Statistics by Ap Group Age Group 30 to to 000 Total N (pam) 208 (5) 257 3701 153 (226) 675 000 comes in Hon W/(w) 786.000 (06) 2017 (630 609.64.95 946.565 (66 Worland/or bestu () 2309389.36 2.0 (T.SK.es.com IASI (S.C. ** decree nam Number of Kuman ( 0.00 0.6810 10.2001 2013 (114) 0.250 0.516) Educatica () 12519 (2201) 12-261 09.2001 TL 2.535) 17.265 (2.200 3424 (2.314 An of Woman (d) 447 (2.734) L THA HAI 12.635 (R) Station the bathroom 1. (TFU) Achat note that mother's education (rond) of each individual could be a good instrument for de although it could becometed with error ter into (1) You do show that edut and made are strongly correlated. Suce medic) O is lily true, you should we OLS 2. We want to estimate a Probit model instead OLS, Write down the latent variable model for equation (1) Be specific to the informationen We have estimated the model described in 2 and the results we Calculate the partial effect at the average for Figure 1: Red robit Iteration of log Helthood -28.46693 Iteration 11 log likelihood --225.76726 Iteration 2: log likelihood --222.22262 Iteration 31 log likelihood -222.15762 Iteration : log likelihood -222. 1572 Number of obs 678 Prebit repression Log likelihood --222.15762 Coef kids to! Std. Err. (95% Conf. Intervall * PI! educ .6273265 hour's -.0005953 age -. 120asa -.00.222 cons 4.411773 .6307256 .6060917 .e111689 .6001189 .6910511 0.89 -6.49 -10.60 -1.67 6.40 0.34 0.000 2.000 ..062 8.000 -.0329009 .600775 -.1422915 .200455 3.676937 .6875530 .6004157 .0952261 .6990111 5.746685 hashrs 1 here and shrs for the group to 39 ind 0 to Show work. Using the information in 2 and 3, what is the partial effects the average for a woman in the sample that has high school education (educins someone with 11 yees of education (educ.) 2 5. Using the information in 2 and 3, test the hypothesis that 8BBs = . Show work and explain. 6. Using the information in 2 and 3, calculate the psuedo R-squared. Show work and explain 7. You have decided to revert back to using kids as a discrete variable. Setup a Heckman Selection Model asuming that age meets the exclusion restriction. Provide an adequate explanation with steps and be specific to the information given. How would you determine whether selection is a problema? Part II Suppose you have data on fatality rates frate from traffic accidents for 100 districts in the years 2012, 2014, and 2018. The determinants (regressos) are alcohol tax revenue (a), average high school graduation rate (grade), and average unemployment rate (unemplos. Note that we also need binary variables representing the year in the model. frate=6+T agrade+Bunemploy+D+De+de (2) The variable o, is the underved district heterogeneity. Treat number is an individual questions unless otherwise specified Pachwumber should be considered an independent question des stated otherwise. (TFU) Since we can not account for din, in the model, the unobserved district will cause bis in the estimates if we estimate pition (2) Archer at that the observed district heterogeneity (dis) is correlated with Setup a mode that would contently estimate the effect on frate Chint: First Difference). Be sure to state required sumption and show procedures to stimating equation. The same researcher notes that heteroticity may also be a problem in the model you setup in 2. Setup a es that es nonlinearites to show whether the researcher could possibly be correct. Be specific and explain 4. Suppose the searcher was correct in 3 and you must adjust for heterosedlasticity (this should not affect your answer in 3). Set up a model that corrects for heterosedlasticity. Be specific to the information given and explain 5. In 2016, a w program was initiated by some districts controlled by the AA political party. The AA party decided restrict the time individual 21 years old or younger can drive. The AA party believes young drivers are the primary cause of accidents so they restricted the time they can legally drive to between 06:00-22:00 Setup a model to analyze the new policy using equation 2 as the base (hint: Dull-in-Diff). Explain and be specific & (TFU) Without using the method in 5, you will over estimate the policy effect of the wew restriction if you and First Difference instead