Assignment 10: ECON-UA 266 – 006 – Intro to Econometrics
Sahar Parsa
02/03/2020
计量经济学homework代写 The last assignment is due on Friday 8st of May 2020 electronically on the course site. It covers the material related
The last assignment is due on Friday 8st of May 2020 electronically on the course site. It covers the material related to quasi-experimental methods. For the Data questions, report the output of your analysis in a “report style” pleasing to read and add the codes you used to generate your results. Do not hand in the raw data, the raw output from R or any intermediary output unless stated otherwise. [1] You are encouraged to discuss the problems with others, but [2] you must write up your own results. Do not copy someone else’s answer. No late assignments accepted; I will drop your lowest homework scores at the end of the semester. All homeworks will be rescaled over 100.计量经济学homework代写
Question 1 [20 points] 计量经济学homework代写
Read the following article: “The Immigration Equation,” by Roger Lowenstein. The New York Times Maga- zine Section, July 9, 2006: https://www.nytimes.com/2006/07/09/magazine/the-immigration-equation.html
You can also download it from LexisNexis that you can access from the Library. Answer the following three questions:
a.[5points] What are the two positions that are taken on the impact of immigration on the labor market by Card and Borjas?计量经济学homework代写
b.[10 points] Explain what a natural experiment is and the importance of “natural experiments” in economics. Are natural experiment part of the quasi-experiment toolkit? Discuss how Card uses a natural experiment to estimate the impact of illegal immigration on the labor market. What does he find?
c.[5 points] Explain the evidence that Borjas generates to support his argument. What data does he use?
Question 2 [30 points] 计量经济学homework代写
In 1985, neither Florida nor Georgia had laws banning open alcohol containers in vehicle passenger com- partments. By 1990, Florida had passed such a law, but Georgia had not.
a.[10 points] Suppose you can collect random samples of the driving-age population in both states, for 1985and Let arrest be a binary variable equal to unity if a person was arrested for drunk driving during the year. Without controlling for any other factors, write down a linear probability model that allows you to test whether the open container law reduced the probability of being arrested for drunk driving. Which coefficient in your model measures the effect of the law?计量经济学homework代写
b.[10 points] Why might you want to control for other factors in the model? What might some of these factorsbe?
c.[10 points] Now, suppose that you can only collect data for 1985 and 1990 at the county level for the two The dependent variable would be the fraction of licensed drivers arrested for drunk driving during the year. How does this data structure differ from the individual-level data described in part (a)? What econometric method would you use?
Question 3 [35 points] 计量经济学homework代写
In politics, there is a large literature exploring whether Democrats differ from Republican politicians in office. To that end, scholars have been using a variety of outcome variables, among others data on spending and revenues. Consider the following model:
Yi = β0 + β1 × Democrati + εi
where Yi is a measure of spending in city i and Democrati is a dummy equal to one if the mayor is a Democrat and zero otherwise.计量经济学homework代写
a.[5points] Can you explain interpret what β1 is capturing?
b.[5 points] Can you explain why theoretically why β1should be different from zero. Do you expect it to be positive or
c.[5points] Explain why estimating β1 with OLS will generate a biased
d.[10 points] Suppose you have information about the all the elections in all american cities from 1950 to today with the margin of victory of the party in office. Can you use this variable and restrict the dataset to the close elections, i.e., margins of victory less than 1% to estimate the regression above withOLS?
e.[5points] Will it lead to an unbiased estimator? Explain why?
f.[5points] Does it lead to a external validity problem? Explain why?
Question 4 – Data Question [15 points] 计量经济学homework代写
Download the (micro) census data of 1940 and 1950. Keep only white women between 25 and 49 years old. Download information about the labor force participation and the number of weeks they worked in the previous year as well as their sex, age, race, and education.
a.[5points] Generate the descriptive statistics.
b.[10points] Do you observe anything unusual about the dataset? Do you think there could be something wrong with the data? How would you describe the problem?
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