APPLIED

ECONOMETRICS I TAKEHOME SECOND MIDTERM

SUBMISSION DEADLINE: ANNOUNCED SECOND MIDTERM TIME AND DATE OF
APPLIED ECONOMETRICS I
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Question 1 (use q1.dta)
The definition of variables in the data file.
Estimate the following sleep equation:




(a) Write a model that exploits the variance of to differ between men and women. The
variance should not depend on other factors.

(b) Estimate the parameters of the model for heteroskedasticty. Is the estimated
variance of higher for men or for women?

(c) Is the variance of different for men and for women?

Question 2 (use q2.dta)
The definition of variables in the data file. Note that mos is months in the data file.

86

86

86

(a) What is the type of this model? Explain briefly.

(b) Show that whether all fitted values are between 0 and 1.
(c) Estimate the model using WLS.
(d) Based on WLS estimates, decide whether avgsen and tottime are jointly significant
at 5% level.

(e) Interpret the coefficient estimates on the variables in the model.
(f) Is this model suffucient?