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Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by wm = 500 + 100s and wf = 300 + 75s.
On average, men have 14 years of schooling and women have 12 years of schooling.
(a) What is the male-female wage differential in the labour market?
(b) Calculate how much of this wage differential is due to discrimination and how much is due to difference in skills.
Question 1: a) Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations. b) How can we estimate a VAR invol
Greenstone Coffee is experiencing financial pressures due to increased competition for its numerous urban coffee shops. Total sales revenue has dropped by 15% and the company wishe
Why use auxiliary regression? What are the benefits of using it?
A store is known for is bargains. The store has the habit of lowering the price of its bargains each day, to ensure that articles are sold fast. Assume that you spot an item on Wed
what is ac that mines average cost,
The following regression was estimated to explain the inflation rate in the USA. The data set contains annual observations from 1970 to 2010. Inft = 2500 + 50*Xt +
how to calculate trade potential on eviews?
#what is economics
how to calculate equilibrium quantity and price
demand function(qd)=650-5p-p2 where p=10
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