<< Chapter < Page Chapter >> Page >

The data are available in the any of the three files MOM.dat , MOM.doc , and MOM.wks .

  1. Provide scatter plots among the dependent variable (Natural logarithm of hours) against each of the explanatory variables Natural logarithm of real wages, Age, Number of children, and Health. (Label these Figures 1 to 4.)
  2. Present a table of the summary statistics for all of the variables in this data set (except ID and Year ).
  3. Provide a histogram of each of the following variables: Natural logarithm of hours, Natural logarithm of real wages, Age, and Number of children. (Label these Figures 5 to 8).
  4. Estimate Equation (1) using (1) OLS (sometimes called a “pooled model”), (2) a “between” model (where the observations in the regression are the averages over the 10 years of each variable for each individual, (3) a fixed effects model, (4) a MLE random effects model and (5) a GLS random effects model. Present the results of your estimations in a single table and offer an interpretation for each parameter you estimate. Use Table 1 as shown below as a template for the table to present your results.
Hours and wages: summary of linear panel model estimations (dependent variable is the natural logarithm of total hours worked in a year; the observations consist of 532 adult males over the 10 year period 1978-1987).
(1) Pooled (2) Between (3) Fixed Effects (4) MLE Random Effects (5) GLS Random Effects
Natural logarithm of real wages
( ) ( ) ( ) ( ) ( )
( ) ( ) ( ) ( ) ( )
Age 2
( ) ( ) ( ) ( ) ( )
Number of children
( ) ( ) ( ) ( ) ( )
Health indicator
( ) ( ) ( ) ( ) ( )
( ) ( ) ( ) ( ) ( )
R 2
σ μ
σ ε
Sample size

The Effectiveness of Advertising Bans on Smoking. Anti-smoking activists often push for a total ban on cigarette advertisements. Indeed, one of the basic assumptions of the groups pushing the 1996 proposed settlement with the tobacco companies is that the amount of tobacco consumed is positively affected by the amount of tobacco advertising. There are two mechanisms that might underlie such a relationship. The first mechanism suggests that the advertising increases the amount of cigarettes smoked by current smokers. Many economists doubt that the tobacco advertising increases the consumption of current smokers, arguing that the total consumption of cigarettes is unresponsive to advertisement. Instead, they argue that advertising is an effort by cigarette companies to affect the brand of cigarettes that current smokers consume. The second mechanism suggests that advertising is an effort by cigarette companies to induce non-smokers (especially children) to try cigarettes. The main reason that cigarette companies want non-smokers to try smoking, so the argument goes, is that some percentage of non-smokers who try cigarettes will become addicted and will form the future demand for cigarettes.

The effect of a total ban on advertising would be completely different if cigarette companies advertise with the hope of increasing the number of people addicted to cigarettes. In particular, the ban should have a small or negligible effect on current cigarette demand. Instead, the cigarette companies would face a steadily decreasing demand for their product. Such a decrease in demand would reduce future profits for these companies. If future profits fell enough, some of the companies might be forced out of business. Clearly, it is this result that anti-smoking activists have in mind with their proposals to ban cigarette advertisements.

Questions & Answers

find the 15th term of the geometric sequince whose first is 18 and last term of 387
Jerwin Reply
The given of f(x=x-2. then what is the value of this f(3) 5f(x+1)
virgelyn Reply
hmm well what is the answer
how do they get the third part x = (32)5/4
kinnecy Reply
can someone help me with some logarithmic and exponential equations.
Jeffrey Reply
sure. what is your question?
okay, so you have 6 raised to the power of 2. what is that part of your answer
I don't understand what the A with approx sign and the boxed x mean
it think it's written 20/(X-6)^2 so it's 20 divided by X-6 squared
I'm not sure why it wrote it the other way
I got X =-6
ok. so take the square root of both sides, now you have plus or minus the square root of 20= x-6
oops. ignore that.
so you not have an equal sign anywhere in the original equation?
is it a question of log
Commplementary angles
Idrissa Reply
im all ears I need to learn
right! what he said ⤴⤴⤴
what is a good calculator for all algebra; would a Casio fx 260 work with all algebra equations? please name the cheapest, thanks.
Kevin Reply
a perfect square v²+2v+_
Dearan Reply
kkk nice
Abdirahman Reply
algebra 2 Inequalities:If equation 2 = 0 it is an open set?
Kim Reply
or infinite solutions?
The answer is neither. The function, 2 = 0 cannot exist. Hence, the function is undefined.
Embra Reply
if |A| not equal to 0 and order of A is n prove that adj (adj A = |A|
Nancy Reply
rolling four fair dice and getting an even number an all four dice
ramon Reply
Kristine 2*2*2=8
Bridget Reply
Differences Between Laspeyres and Paasche Indices
Emedobi Reply
No. 7x -4y is simplified from 4x + (3y + 3x) -7y
Mary Reply
how do you translate this in Algebraic Expressions
linda Reply
Need to simplify the expresin. 3/7 (x+y)-1/7 (x-1)=
Crystal Reply
. After 3 months on a diet, Lisa had lost 12% of her original weight. She lost 21 pounds. What was Lisa's original weight?
Chris Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
many many of nanotubes
what is the k.e before it land
what is the function of carbon nanotubes?
I'm interested in nanotube
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
what is system testing
what is the application of nanotechnology?
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
anybody can imagine what will be happen after 100 years from now in nano tech world
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
how hard could it be to apply nanotechnology against viral infections such HIV or Ebola?
silver nanoparticles could handle the job?
not now but maybe in future only AgNP maybe any other nanomaterials
I'm interested in Nanotube
this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
can nanotechnology change the direction of the face of the world
Prasenjit Reply
At high concentrations (>0.01 M), the relation between absorptivity coefficient and absorbance is no longer linear. This is due to the electrostatic interactions between the quantum dots in close proximity. If the concentration of the solution is high, another effect that is seen is the scattering of light from the large number of quantum dots. This assumption only works at low concentrations of the analyte. Presence of stray light.
Ali Reply
the Beer law works very well for dilute solutions but fails for very high concentrations. why?
bamidele Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
Privacy Information Security Software Version 1.1a
Got questions? Join the online conversation and get instant answers!
QuizOver.com Reply

Get the best Algebra and trigonometry course in your pocket!

Source:  OpenStax, Econometrics for honors students. OpenStax CNX. Jul 20, 2010 Download for free at http://cnx.org/content/col11208/1.2
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Econometrics for honors students' conversation and receive update notifications?