Use the data in WAGEPAN.DTA to answer the following questions. (i)

Question
Use the data in WAGEPAN.DTA to answer the following questions.  (i) Using lwage as the dependent variable, estimate a model that only contains an intercept and the year dummies d81 through d87. Use pooled OLS, RE, FE, and FD (where in the latter case you difference the year dummies, along with lwage, and omit an overall constant in the FD regression). What do you conclude about the coefficients on the year dummies? (ii) Add the time-constant variables educ, black, and hisp to the model, and estimate it by OLS and RE. How do the coefficients compare? What happens if you estimate the equation by FE? (iii) What do you conclude about the four estimation methods when the model includes only variables that change just across t or just across i? (iv) Now estimate the equation by random effects. Do the coefficients seem reasonable? How do the nonrobust and clusterrobust standard errors compare? (v) Now estimate the equation by fixed effects, being sure to include the full set of time dummies to reflect the different interecepts. How do the estimates of b1 and b2 compare with those in part (iv)? Compute the usual FE standard errors and the cluster-robust standard errors. How do they compare? (vi) Obtain the time averages unioni and marriedi. Along with educ, black, and hisp, add these to the equation from part (iv). Verify that the CRE estimates of b1 and b1 are identical to the FE estimates. (vii) Obtain the robust, variable addition Hauman test. What do you conclude about RE versus FE? (viii) Let educ have an interactive effect with both union and married and estimate the model by fixed effects. Are the interactions individually or jointly significant? Why are the coefficients on union and married now imprecisely estimated? (ix) Estimate the average partial effects of union and married for the model estimated in part (viii). How do these compare with the FE estimates from part (v)? (x) Verify that for the model in part (viii) the CRE estimates are the same as the FE estimates when they should be.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more