Part 4 Questions 21 22 One Is Curious About The Relationship Between Wage And Experience Suppose That Wage Increases 1 (21.95 KiB) Viewed 16 times
Part 4 Questions 21 22 One Is Curious About The Relationship Between Wage And Experience Suppose That Wage Increases 2 (26.22 KiB) Viewed 16 times
PART 4. (Questions 21-22) One is curious about the relationship between wage and experience. Suppose that wage increases with experience, but at a decreasing rate. If you estimate the following regression using OLS: wage = Bo + Biexperience + u, the estimator for B₁ is O a) biased and inconsistent Ob) unbiased and consistent c) biased and consistent d) unbiased and inconsistent Question 22
You are interested in the relationship between crime rate and police expenditure at a state level. Suppose that states tem increase budgets for police expenditure in response to high crime rates. If you run the following regression using OLS: crime = Bo+By expenditure + u, you are faced with which of the following threats to internal validity? O There is no threat to internal validity in this case. O Simultaneous causality O Sample selection bias O Misspecification of the functional form Part 5, Questions 23-25. Trade, growth, and development with panel data. You have a panel with 185 countries and 10 years (from 1996 to 2005), and you want to estimate the fe model:
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