Reference no: EM131095939
Econometrics 718 - Optional Problem Set
Problem 1- Lets think about the propensity score. What we showed in class is that the distribution of Xi is identical for the treatments and non-treatments when we control for the propensity score. Let's show that. Let's suppose that this is the distribution of (X1i, X2i, Ti) in the population
X1i
|
X2i
|
Ti
|
Prob.
|
0
|
0
|
0
|
0.10
|
0
|
0
|
1
|
0.10
|
0
|
1
|
0
|
0.10
|
0
|
1
|
1
|
0.20
|
1
|
0
|
0
|
0.05
|
1
|
0
|
1
|
0.10
|
1
|
1
|
0
|
0.10
|
1
|
1
|
1
|
0.25
|
That is Prob. is the probability of that particular outcome. Notice the probabilities add up to one.
1. Calculate the propensity score for each of the four different combinations of X1i and X2i
2. Calculate
(a) The distribution of (X1i, X2i) conditional on the propensity score is 2/3 and Ti = 1
(b) The distribution of (X1i, X2i) conditional on the propensity score is 2/3 and Ti = 0
(c) The distribution of (X1i, X2i) conditional on the propensity score is 2/3 and not conditioning on Ti
Problem 2 - Use the stata data jtrain2.dta that you can get from https://www.stata.com/texts/eacsap/. The treatment here is "train" and we will estimate the effect of the treatment on the treated in a number of different ways. The dependent variable will be re78 (real earnings in 1978). Let's first only control for black and hispanic, so there are three categories black, hispanic, and non-black non-hispanic.
a) Tabulate the 6 cell means by race and by training status. That is the mean for black trainees, etc. Also what are the proportions of the three groups by training status?
b) Use the 12 numbers from part a) to calculate an estimate of the treatment on the treated.
c) Use regression analysis with dummy variables to estimate the treatment on the treated.
d) Now use propensity score matching. Stata 13 does this with the package teffects psmatch.
e) Estimate the TT parameter using reweighting.
Problem 3 - Now pick some other data set and choose a treatment variable. Continue to estimate the treatment on the treated.
a) Estimate using linear regression.
b) Try doing by propensity score matching in 4 different ways (any variations you choose).
c) Estimate by reweighting.
The nursing cost per patient day for each patient type
: Calculate the nursing cost per patient day for each patient type using patient days to assign the cost.
|
Verify the two part regression results
: Take any data set you would like and verify the two part regression results (if you google something like econometric data sets there are a lot to choose from). That is think about a multiple regression which you can separate the independent varia..
|
Budget request assignment
: 1. The Department of Revenue wants to add more people to the unit that attempts to collect unpaid taxes through telephone contact. As a budget analyst, what questions would you ask after you receive and review the following request? Be specific, ..
|
Summary of significant accounting policies
: Visit Targets's website at www.target.comand access the most recent annual report. Locate the summary of significant accounting policies and find the inventory method(s) used by Target.
|
Estimate the treatment on the treated
: Econometrics 718 - Optional Problem Set. Now pick some other data set and choose a treatment variable. Continue to estimate the treatment on the treated. Estimate using linear regression
|
Think about tiebout sorting
: Several states mandate that school district boundaries follow county lines, while other states allow several school districts to locate in the same county. Assume that county size is approximately the same in both of these groups of states. Think abo..
|
Profit-maximizing firm will use less of factor of production
: A profit-maximizing firm will use less of a factor of production when:
|
Foreign exchange market is assumed to be efficient
: Discuss fully by appealing to theory and using examples, why a no-arbitrage condition is expected to hold for transactions involving exchange rates both spatially and inter-temporally if the foreign exchange market is assumed to be efficient
|
Internal corporate memorandum
: Marriott Hotel write an internal corporate memorandum (business memo) to the General Managers of the individual hotels in the company (or Hotel Managers You should inform them in a convincing way that all units company-wide and world-wide are to star..
|