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Consider a simple model to estimate the effect of personal computer (PC) ownership on college grade point average (GPA), GPA = beta 0 + beta 1PC + u where PC is a binary variable indicating PC ownership. Why might PC ownership be correlated with the error term u? Would such a correlation present problems for the use of OLS estimation? Explain why PC is likely to be related to parent's income. Would parent's income be a good Instrumental Variable for PC? Why or why not? Suppose that, four years ago, the university gave computers to one - half of the new incoming students on a randomly selected basis. Explain how you would use this information to construct an instrumental variable for PC. Explain how you could use the instrumental variable from iv) above to test for the endogeneity of PC in this simple model.
which good should the government impose the tax if it needs to maximize government revenue
In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program.
Show long run effect on In Phillips curve diagram. If expectations are rational and increase in money growth is announced, what happens to In short run.
Considers a consumer who suddenly changes her preferences with regard to air travel,
Illustrate what is the ability to pay principle in public Fiance also what are some of the problems implementing it.
List and describe the firms in the Industry. Describe the product, production methods, scale of production, and sources for raw materials. What technologies are used?
illustrate what kind of policy would you recommend to slow population growth.
Would Boeing's margin likely rise or fall if the yen then depreciated and competitor prices were unchanged? Why?
Illustrate how the market, if left alone, would move us out of the recessionary gap. Also, explain all, if any, fiscal policy steps that can be used to lift us out of the recessionary gap. Explain which method, the market or fiscal policy, do you ..
Explains how the organization's goals drive the selection of the information systems. The roles each organization's stakeholders play in the selection and acquisition process.
Ilustrate what is the equilibrium cost in the corn chip market. How many corn chips will be bought by children and how many by adults.
Do not try to explain people's tastes, but they do try to explain what happens when tastes change.
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