Solved Questions

Solutions
Question
1
solution
Category: Economics
If we have money supply growth since 1973 for each country, which we assume is exogenous, does this help identify equation (16.23)?
1
solution
Category: Economics
A standard model of advertising for monopolistic firms has firms choosing profit maximizing levels of price and advertising expenditures. Does this mean we should use an SEM to model these variables at the firm level?
1
solution
Category: Economics
If some men who were assigned low draft lottery numbers obtained additional schooling to reduce the probability of being drafted, is lottery number a good instrument for veteran in (15.18)?
1
solution
Category: Economics
When using the differencing method, does it make sense to include dummy variables for the mother and father's race in (14.28)? Explain.
1
solution
Category: Economics
The union premium estimated by fixed effects is about 10 percentage points lower than the OLS estimate. What does this strongly suggest about the correlation between union and the unobserved effect?