« Material for Lecture 4 on Thursday 1/19/12 | Main | Material for Lecture 5 on Tuesday 1/24/12 »

Monday, January 23, 2012

Homework 3

[Note: The assignment will be discussed in lab this week, and will be due in lab next week.]

Economics 421/521
Winter 2012
Homework #3

1. Problem 3 from Homework 2 (the problem that was canceled on the last set).

2. Using the first model of heteroskedasticity, i.e. that resid2 = α0 + α1*years + α2*years2, correct the salary model in problem 3 from Homework 2 for heteroskedasticity and reestimate.

3. Problem 7.2 in the text.

4. Test the salary model in problem 3 from Homework 2 for heteroskedasticty using White's test. Correct the standard errors using White's correction. How do the coefficients and corrected standard errors compare to those obtained in problem 3 of Homework 2?

5. What are the consequences of estimating an autoregressive model using OLS?

[Note: pdf of problems 7.1 and 7.2, problem 7.1 was on the last homework.]

Posted by on Monday, January 23, 2012 at 03:15 PM in Homework, Winter 2012 |

Comments

Verify your Comment

Previewing your Comment

Posted by:  | 

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment