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http://www.principlesofeconometrics.com/poe5/poe5rdata.html (r studio) Consider the data file mroz on working wives. Estimate the wage equation log(WAGE) = B1 + 32EDUC + B;FAMINC + BAKIDSL6 +

http://www.principlesofeconometrics.com/poe5/poe5rdata.html (r studio)

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Consider the data file mroz on working wives. Estimate the wage equation log(WAGE) = B1 + 32EDUC + B;FAMINC + BAKIDSL6 + e using MOTHEREDUC as an instrument for EDUC, and compute the 95% interval estimate for the coefficient of EDUC. Note: You will need to subset the data for Ifp = = 1. O a. [-0.0641, 0.0758] O b. [-0.0776, 0.0893] O C. [0.0260, 0.1144] O d. [-0.010, 0.1506]Consider the data file mroz on working wives. For the wage equation log(WAGE) = B1 + B2EDUC + B;FAMINC + BAKIDSL6 +e we will use FATHEREDUC as an instrument for EDUC. Estimate the respective first-stage equation and determine if FATHEREDUC is a strong instrument. Note: You will need to subset the data for Ifp == 1. a. Since F = 8.435 10, it appears that FATHEREDUC is a weak instrument. " Since F = 71.15 > 10, it appears that FATHEREDUC is a strong instrument. O d. Since F = 8.435

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