Estimate the model covered in class by OLS and 2SLS but replace education by the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Estimate the model covered in class by OLS and 2SLS but replace education by the following dummy D = {0,1} where D = 1 if education > 12. (You need the following packages for this question: ivreg, sandwich, Imtest, nlWaldTest.) i) What are the estimates of the coefficient of D by OLS and 2SLS? What are their robust standard errors? Are they significant at 5% level? ii) For 2SLS, test the the joint hypothesis Ho: Beducation = 0 and Bexperience +12ßexperience = 0 by command "nlWaldtest". You need to obtain the robust covariance matrix first by vcovHC. Estimate the model covered in class by OLS and 2SLS but replace education by the following dummy D = {0,1} where D = 1 if education > 12. (You need the following packages for this question: ivreg, sandwich, Imtest, nlWaldTest.) i) What are the estimates of the coefficient of D by OLS and 2SLS? What are their robust standard errors? Are they significant at 5% level? ii) For 2SLS, test the the joint hypothesis Ho: Beducation = 0 and Bexperience +12ßexperience = 0 by command "nlWaldtest". You need to obtain the robust covariance matrix first by vcovHC.
Expert Answer:
Related Book For
Advanced Accounting
ISBN: 978-0078025402
11th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these economics questions
-
Question 1 1. With the aid of a suitable supporting diagram, outline the purpose and key components of a Decision Support System (DSS). 2. With reference to the diagram you provided in your answer to...
-
For the year ended December 31, 2020, Sweet Ltd. reported income before income taxes of $190,500. Prior to 2020 taxable income and accounting income was the same each year. In 2020, Sweet Ltd. paid...
-
In the year ended December 31 2017 Hexham Inc Hexham reported net income of 5 100 000 which included a writeoff of 1 377 000 of company assets During 2017 accounts receivable increased by 137 700...
-
1. What is Anthropology, Sociology, and Political Science in your own understanding? 2. What is the nature of Anthropology, Sociology, and Political Science? 3. How are they similar with one another?
-
Do local service stations need to have written vision and mission statements? Why or why not?
-
Which of the following areas of culture presents the greatest challenge for internal audit functions who want to become trusted advisors? a. Receiving approval to include consulting services in the...
-
Use the method of eigenfunction expansions to solve the problems: a. \(y^{\prime \prime}+4 y=x^{2}, \quad y^{\prime}(0)=y^{\prime}(1)=0\). b. \(y+4 y=x^{2} \quad y(0)=y(1)=0\).
-
Jeter Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Jeter...
-
Packlite company has a defined benefit plan with 100 nonexcludable employees (25 HC and 75 NHC). They are unsure if they are meeting all of their testing requirements. What is the minimum number of...
-
Jeffrey Vaughn, president of Frame-It Company, was just concluding a budget meeting with his senior staff. It was November of 20x0, and the group was discussing preparation of the firm's master...
-
XXX will pay an annual dividend of $1.90 per share one year from today. The stock currently sells for $24.67 per share. Given the firms risk, the required rate of return for the stock is 12.30%. What...
-
Natural resource policies and management practices often focus on addressing "spillover" effects of one person's actions on other people. For example, we discussed how logging practices might impact...
-
Emanuel Jones has been on medication for several years to stop the voices he heard inside his head. He recently stopped taking his medication because it made him sleepy. Five days ago, during a visit...
-
As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 3% interest compounded annually. (Round your answers to the nearest cent.)
-
Explain briefly what responsibility and consequence, if any, each of the following had for the 2008-09 Great Recession: a. homeowners; b. financial institutions; c. the Federal Reserve Bank &...
-
Velocity of electromagnetic wave is 3.0x10^8 what is the wavelength of FM radio waves having frequency of 1x10^8hz
-
4) b) Account payable 12800 income tax payable 4800Account receivable 29200 insurance expense 3500Accumulated de 0 answers
-
Prepare a stock card using the following information A company is registered for GST which it pays quarterly, assume GST was last paid on the 30th of June 2019. It uses weighted average cost...
-
Mesa, Inc., obtained 80 percent of Butte Corporation on January 1, 2011. Annual amortization of $22,500 is to be recorded on the allocations of Butte's acquisition-date business fair value. On...
-
Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop...
-
How should a company handle LIFO liquidation in an interim period when the liquidated inventory is expected to be replaced by year-end?
-
The managers at General Manufacturing Company are considering replacing the industrial lathe used in the companys factory. Required: Prepare a relevant cost schedule showing the benefit of keeping...
-
The managers at Wilma Manufacturing are considering replacing a printing press with a new, high-speed model. Required: Prepare a relevant cost schedule showing the benefit of keeping the old printing...
-
Photo Express operates a small camera store in Ft. Lauderdale, Florida. The store has two departments, camera sales and photo finishing. Rent, utilities, and other operating expenses are allocated to...
Study smarter with the SolutionInn App