Subject Code : ECMT1020
Country : Malaysia
Assignment Task:

TASK:

Questions 1. Fit an educational attainment function using your data set. Regress S on ASVABC, SM and SF, and interpret the regression results. Perform t tests on the coefficients of the variables in the education attainment function.

2. Perform a F test of the explanatory power of the equation you obtained in Question 1. Calculate the F statistic using R2 and verify it is the same as the F statistic in your Stata output.

3. Regress the logarithm of EARNINGS on S and EXP. Interpret the regression results, perform t tests on the coefficients and F test of the explanatory power of the model.

4. Regress logarithm of EARNINGS on S, EXP, MALE, ETHHISP and ETHBLACK. Interpret the regression results and perform t tests on the coefficients. Are earnings subject to ethnic discrimination?

5. Redo Question 4 making ETHBLACK the reference category. What are the impacts of change of reference on the interpretation of the coefficients and the statistical tests (t tests of the coefficients and F test of the model)?

6. Define a slope dummy variable as the product of MALE and S. Regress the logarithm of EARNINGS on S, EXP, ETHHISP, ETHBLACK, MALE, and the slope dummy variable. Interpret the equation and perform appropriate statistical tests (t tests of the coefficients and F test of the model). Is the effect of education on earnings different for males and females?

7. The composite measure of cognitive ability, ASVABC, in the data set was constructed as a weighted average of the scores of tests of arithmetic reasoning, ASVABAR, word knowledge, ASVABWK, and paragraph comprehension, ASVABPC, with ASVABAR being given double weight. Show mathematically that, when fitting the educational attainment function S = β1 + β2SM + β3SF + β4ASVABC + u instead of the model using the individual scores S = β1 + β2SM + β3SF + γ1ASVABAR + γ2ASVABWK + γ3ASVABPC + u, one is implicitly imposing the restrictions γ1 = 2γ2 and γ1 = 2γ3. Perform a test of these restrictions using your data set.

8. Fit a wage equation with EARNINGS as the dependent variable and S, EXP and MALE as the explanatory variables. Perform a Goldfeld-Quandt test for heteroskedasticity in the S dimension. 9. Fit a wage equation using the same specification as in Question

8. Perform a White test for heteroskedasticity.

10. Perform an OLS regression of the logarithm of hourly earnings on S, EXP, ASVABC, MALE, ETHBLACK and ETHHISP using your data set and an IV regression using SM, SF, and SIBLINGS as instruments for ASVABC. Perform a Durbin-Wu-Hausman test to evaluate whether ASVABC appears to be subject to measurement error.

This Economics Assignment has been solved by our Economics experts at UniLearnO. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : Pearl
  • Posted on : June 09th, 2019

Whatsapp Tap to ChatGet instant assistance