ARE 212 - Problem Set 5
Due May 1st
Part I: Theory (Optional)
1. Show that the parameter estimates for b2SLS and bIV are equivalent if we have a model with one endogenous
variable and one instrumental variable.
2. Prove that for E[Z,X] to be of full column rank, at least one of the θj in the linear projection xk = δo +δ1x1 +δ2x2 + . . . + δk1xk1 + θ1z1 + θ2z2 + . . . + θMzM + η has to be different from zero.
Part II (Applied): Instrumental Variables
1. Let’s revisit the model and data from problem set 4. We would like to estimate the model:log(wage) = βo+exper·β1+tenure·β2+married·β3+south·β4+urban·β5+black·β6+educ·β7+abil·γ+ε (1)
One of the big problems in the labor literature is that we do not (as econometricians) observe ability. If ability
is not correlated with any of the right hand side variables, we can include it in the disturbance and nothing is
lost by not observing it. If, however, it is correlated with one or more of the right hand side variables, OLS is
no longer unbiased or consistent. Assume that ability is correlated with education and none of the other right
hand side variables.
(a) Derive the bias of β7 and show what direction the bias goes in depending on whether the correlation
between ability and education is positive or negative.
(b) You showed in the first part that we can derive the sign/direction of the bias. One approach that has
been take in the literature is using a ”proxy” variable for the unobservable ability. We will use IQ here to
proxy for ability. Estimate the model above excluding ability, record your parameter estimates, standard
errors and R2.
(c) Estimate the model including IQ as a proxy, record your parameter estimates, standard errors and R2.
(d) What happens to returns to schooling? Does this result confirm your suspicion of how ability and schooling
are expected to be correlated?
2. This problem from Wooldridge asks you to try and recreate some of the results in Card(1995), which is on
reserve and on the website. Use the dataset card.raw on the website.
(a) Read the data in your favorite statistical program. Plot the series make sure your data are read in
correctly.

ARE 212留学生作业代做、c++,Python编程设计作业代写、代做b2SLS,bIV作业
(b) Estimate a log(wage) regression via Least Squares with educ, exper, exper2, black, south, smsa, reg661
through reg668 and smsa66 on the right hand side. Check your results against Table2, column 5.
(c) Estimate a reduced form equation for educ containing all of the explanatory variables and the dummy
variable nearc4. Is the partial correlation between nearc4 and educ statistically significant?
(d) Estimate the log(wage) equation by instrumental variables, using nearc4 as an instrument for educ.
Compare the 95% confidence interval for the return to educutioan to that obtained from the Least Squares
regression above.
(e) Now use multiple instruments. Use nearc2 and nearc4 as instruments for educ. Comment on the signifi-
cance of the partial correlations of both instruments in the reduced form. Show your standard errors from
the second stage and compare them to the correct standard errors.
(f) Conduct a Hausman test for endogeneity of educ. Report your test statistic, critical value and p-value.

因为专业,所以值得信赖。如有需要,请加QQ:99515681 或邮箱:99515681@qq.com

微信:codinghelp

ARE 212 - Problem Set 5的更多相关文章

  1. hdu-5904 LCIS(水题)

    题目链接: LCIS Time Limit: 4000/2000 MS (Java/Others)    Memory Limit: 65536/65536 K (Java/Others)Total ...

  2. 2016 ACM/ICPC Asia Regional Shenyang Online 1007/HDU 5898 数位dp

    odd-even number Time Limit: 2000/1000 MS (Java/Others)    Memory Limit: 65536/65536 K (Java/Others)T ...

  3. HDU 4617Weapon(两条异面直线的距离)

    Weapon Time Limit: 3000/1000 MS (Java/Others)    Memory Limit: 65535/32768 K (Java/Others) Total Sub ...

  4. Strongly connected(hdu4635(强连通分量))

    /* http://acm.hdu.edu.cn/showproblem.php?pid=4635 Strongly connected Time Limit: 2000/1000 MS (Java/ ...

  5. Connect the Cities(prim)用prim都可能超时,交了20几发卡时过的

    Connect the Cities Time Limit: 2000/1000 MS (Java/Others) Memory Limit: 32768/32768 K (Java/Others) ...

  6. (bc 1002)hdu 6016 count the sheep

    Count the Sheep Time Limit: 3000/1500 MS (Java/Others)    Memory Limit: 65536/65536 K (Java/Others) ...

  7. ural 2018 The Debut Album(dp¥)

    2018. The Debut Album Time limit: 2.0 secondMemory limit: 64 MB Pop-group “Pink elephant” entered on ...

  8. 79. 212. Word Search *HARD* -- 字符矩阵中查找单词

    79. Word Search Given a 2D board and a word, find if the word exists in the grid. The word can be co ...

  9. (Problem 46)Goldbach's other conjecture

    It was proposed by Christian Goldbach that every odd composite number can be written as the sum of a ...

随机推荐

  1. WebService - [Debug] java.net.BindException: Can't assign requested address

    Connected to the target VM, address: '127.0.0.1:57803', transport: 'socket' Exception in thread &quo ...

  2. 解决radio、select表单返回时,再次选择失效

    应用场景:我们在选择好radio跟select之后提交表单,返回历史记录时,再次选择,提交表单,发现提交的是上次表单选择的 解决办法:我们可以一进页面就给radio跟select的选项重置掉,因为,返 ...

  3. HTTP协议11-cookie和seesion

    因为HTTP协议是无状态的,但是很多网站的功能需要先登录才能使用.这就引入了cookie. Cookie机制 服务器用HTTP头向客户端发送cookies.客户端(浏览器)解析cookies并将它们保 ...

  4. C++设计模式——迭代器模式

    前言 最近非常感伤,总是怀念大学的日子,做梦的时候也常常梦到.梦到大学在电脑前傻傻的敲着键盘,写着代码,对付着数据结构与算法的作业:建立一个链表,遍历链表,打印链表.现在把那个时候声明的链表的头文件拿 ...

  5. 用WKWebView 截取整个Html页面

    以前使用UIWebview时,想截取整个页面,可以调整内部scrollView的frame,之后调用 scrollView的layer的 render 方法,很方便. 但是在WKWebView上,行不 ...

  6. bootstrap轮播图 两侧半透明阴影

    用bootstrap轮播图:Carousel插件,图片两侧影音实在碍眼,想去掉,首先发现有css里由opacity: 0.5这个东西来控制,全部改成opacity: 0.0,发现指示箭头也看不见了. ...

  7. Java的家庭记账本程序(H) :微信小程序 image 标签,在模拟器中无法显示图片?(已解决)

    日期:2019.2.25 博客期:036 星期一 吼!今天我还是继续研究了自己的微信小程序,还没有连接数据库,只是在xml的设计上添加了不少东西,大家可以看我的截图,嗯~说到今天的收获,就是 marg ...

  8. table行颜色设置

    function renderingTable(obj){    $(obj).each(function(){        //设置奇数行颜色        $(this).find(" ...

  9. 华为交换机批量加入 Vlan 方法

    华为交换机单独加入vlan太麻烦,思科有批量加入vlan的方法,华为也有.要求 1~6口划分到vlan2,6~12口划分到vlan3,13~18口划分到vlan4,19~24口划分到vlan5.25, ...

  10. Hadoop生态组件Hive,Sqoop安装及Sqoop从HDFS/hive抽取数据到关系型数据库Mysql

    一般Hive依赖关系型数据库Mysql,故先安装Mysql $: yum install mysql-server mysql-client [yum安装] $: /etc/init.d/mysqld ...