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For the model and data of section 9.2, obtain the panel iv estimator in the PE model by applying the ivregress command to the mean-differenced model with a mean-differenced instrument Hint: For example, for variable x, type by id: egen avex mean(x) followed by summarize x and then generate mdx = x - avex + r (mean). Verify that you get the same estimated coefficients as you would with xtivreg, f e.
there are two people in a society. Person A is willing to pay $70 to have one unit of a public good produced and Person B is willing to pay $80 to have one unit of a public good produced and $70 to have two units produced.
Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.
Drink Tax: The weekly supply Qs(p), and demand, Qd(p), of beer in a city are given by: Qs(p) = p; Qd(p)=6.2 - .55*p where p is the price of a beer in dollars and quantities are in hundreds of thousands of beers. To find the equilbrium quantity and..
Assume the demand function and the supply functions for 24-can beer case in Houston are: Demand: QD = 1,000 ? 50P Demand: QS = 40P + 100 (a) What are the market equilibrium price and quantity for beer case?
Do you think a full-fledged developing-country debt crisis might reemerge in the future? If so, why and under what conditions? If not, why not? In what ways was the recent global financial crisis similar to past crises, and in what ways did it dif..
Do you use illustrations to teach others? How have you used examples to win an argument, teach your child a difficult lesson, or to explain a problem? In what ways are illustrations a part of your daily interactions with others?
What incentives do the two firms have to lower prices as a way of trying to get consumers to switch the firm they buy from? Which firm is more likely to lower its price?
You have given the following data about the amount your firm can manufacture per day given the number of workers it hires.
Is it something undesirable? Explain. How can a wage-price spiral be avoided?
What is the price elasticity of demand?
Jane receives utility from days spent traveling domestically (d) and days spend traveling in foreign countries (f). Her utility function is U(d, f) = 10df. She has $4000 per year to spend on travel. It costs $100 to spend a day traveling domestical..
Ten bidders in an oral auction have the following values for an antique clock ($10, $9, $8, $7, $6, $5, $4, $3, $2, $1). If bidders of the $10 and $9 bids collude and bidders of the $3, $4, and $5 bids collude, what will the winning price be?
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