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You want to estimate whether there is a relationship between gender and smoking at your university. You collect data for a random sample of 200 students and run a linear probability model, a probit model and a logit model, where the dependent variable is a binary indicator for whether an individual smokes, and the main explanatory variable is a dummy variable indicating males (you also include other controls such as age). Your estimated coefficients are 0.084 in the LMP, 0.688 in the probit model, and 0.389 in the logit model. In spite of these large differences, all three models yield similar estimates of the marginal effect of gender on the probability of smoking. How can this be?
Is the effect on the price of toys the same or different? Why is a standards policy preferred to tariffs?
A doctor earns $250,000 per year, while aprofessor earns $40,000. They play tennis against eachother each Saturday morning, each giving up a morning ofrelaxing, reading the paper, and playing with their children.
Suppose that, instead of a minimum wage of $4, the government is providing a subsidy to employers to raise the equilibrium wage to $4. How much will this subsidy have to be and what will the new equilibrium level of employment be
assume that all other banks hold only the required amount of reserves. if First national decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase
Suppose a monopolist can purchase Labor at a price w = 36 and can purchase Capital at a price r = 25. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 180 - 3Q.
Consider three alternative policies, each with a different set of outcomes in terms of output and inflation, as shown in following table: Output Output Output Inflation Inflation Inflation Policy A Policy B Policy C Policy A Policy B Policy C
Consider the source population that gave rise to the cases.Imagine you wanted to conduct a similar study in the U.S. How might you measure the exposure differently?
Data on historical national health expenditures
1. the discrete random variable x has probability distribution given bya. find the value of a. b.
Draw a complete graph showing Petrov s initial (before the gas tax) budget line and his initial choice. At his initial choice, the marginal utility per dollar on gasoline is utils.
A decision maker wishe to minimize the cost of producing a given level of total benefit, B = 288. The cost function is C = 6x + 3y and the total benefit is B = xy. Set up the Lagrangian adn then determine the levels of x and y at the minimum level..
A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm has a marginal income-tax rate of 40%.
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