LABOR ECONOMICS (LL+ACCESS)
8th Edition
ISBN: 9781264909339
Author: BORJAS
Publisher: MCG
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Chapter 9, Problem 8P
To determine
Decompose the raw difference in average logged wages using the Oaxaca-Blinder decomposition.
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We have estimated the impact of gross domestic product (GDP), energy consumption (ENERGY) and population
(POP) on CO2 emiisions (CO2) in Cyprus. The results are as follows,
Dependent Variable: CO2
Method: Least Squares
Date: 04/20/17 Time: 09.46
Sample: 1990 2013
Included observations: 24
Variable
Coefficient
Std. Error
t-Statistic
Prob.
GDP
ENERGY
POP
2.002813
0.022114
-0.734352
0.203927
6.458672
0.011872
0.328388
0.293686
0,310097
1.862670
-2.236233
0.694371
0.7597
0.0773
0,0369
0.4954
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
0.825079 Mean dependentyar
0.798841
0.048515 Akaike info criterion
0.047074 Schwarz criterion
40.75460 Hannan-Quinn.criter.
31.44583 Durbin-Wats on stat
0.000000
3.625982
0.108170
-3.062883
-2.866541
-3.010793
1.410912
S.D. dependent yar
a Write down the economie function for the above estimation by using the information obtained from
above table|
b- Write down the economic model for the above…
Show the graphical form of the econometric error using sample regression line (SRL) and the population regression line(PRL).
In exercise 1, the following estimated regression equation based on 10 observations was presented.
y^=29.1270+.5906x1+.4980x2Here SST=6724.125, SSR=6216.375, sb1=.0813, and sb2=.0567.
a) Compute MSR and MSE.
b) Compute F and perform the appropriate F test. Use α=.05.
c) Perform a t test for the significance of β1. Use α=.05.
d) Perform a t test for the significance of β2. Use α=.05.
Chapter 9 Solutions
LABOR ECONOMICS (LL+ACCESS)
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