{"id":35099,"date":"2023-11-07T00:04:03","date_gmt":"2023-11-07T00:04:03","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/1-use-the-data-set-mroz-txt-to-do-the-following-regressions-to-read-the-data-set-into-r-you-may-use-the-read-table-command-such-as-data\/"},"modified":"2023-11-07T00:04:03","modified_gmt":"2023-11-07T00:04:03","slug":"1-use-the-data-set-mroz-txt-to-do-the-following-regressions-to-read-the-data-set-into-r-you-may-use-the-read-table-command-such-as-data","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/1-use-the-data-set-mroz-txt-to-do-the-following-regressions-to-read-the-data-set-into-r-you-may-use-the-read-table-command-such-as-data\/","title":{"rendered":"1. Use the data set MROZ.txt to do the following regressions. To read the data set into R, you may use the read.table command, such as: data <- read.table(\"MROZ.txt\")"},"content":{"rendered":"<p>(a) Run an OLS regression of logarithm wage (lwage) on years of schooling (educ), i.e.,<\/p>\n<p>lwagei = \u03b1 + \u03b2educi + ui.<\/p>\n<p>Use a sentence to interpret \u03b2\u02c6OLS.<\/p>\n<p>(b) Use ivreg command to run a Two Stage Least Squares (2SLS) regression. Use father\u2019s years of<\/p>\n<p>schooling (fatheduc) as the instrument variable. Use a sentence to interpret \u03b2\u02c6<\/p>\n<p>2SLS.<\/p>\n<p>(c) Check the F-statistics from the first-stage regression. How large it is? Is the instrument variable<\/p>\n<p>weak?<\/p>\n<p>(d) Perform a Hausman\u2019s test to compare OLS with 2SLS estimators. Write down your test hypoth-<\/p>\n<p>esis, p-value and conclusion.<\/p>\n<p>(e) Discuss if father\u2019s years of schooling (fatheduc) is a solid instrument variable, i.e., satisfies con-<\/p>\n<p>ditions of instrument variables.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(a) Run an OLS regression of logarithm wage (lwage) on years of schooling (educ), i.e., lwagei = \u03b1 + \u03b2educi + ui. Use a sentence to interpret \u03b2\u02c6OLS. (b) Use ivreg command to run a Two Stage Least Squares (2SLS) regression. Use father\u2019s years of schooling (fatheduc) as the instrument variable. Use a sentence to [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[223],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/35099"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=35099"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/35099\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=35099"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=35099"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=35099"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=35099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}