Introductory Econometrics ECOM 20001計算機經濟學導論
Assignment 2 essay
This assignment is worth 10% of the overall subject mark. 這份essay占整個科目分數的10％的。 It is to be submitted electronically using the Faculty  Assignment Tool. essay用學院essay工具以電子方式提交。 This is an individual project each person is expected to do th eir own assignment. 這是一個個人項目，每個人都應該完成自己的essay。  It is due at 4pm on Wednesday  24th October.  Make sure to use the table  below to record your name and student id, your tutor’s name and tutorial time/loca tion.  Question 1 is worth 15 marks, and question 2 is worth 15 for a total of 30 ma rks and these will be allocated for 10% of your final mark.
 
Limit your total response to no more than  10 A4 pages. 提交的essay限制在10頁A4紙以內。You may cut and paste the Eviews output in your file. 你可以將Eviews輸出剪切和粘貼在你的文件里。  The equations  can be done using the equation editor in Word.  
 
Make sure to copy the table shown below at the beginning of your answers.
 
Question 1  問題一(15 marks)
     
The data file  wage04.wf1  contains data for 4,500 full-time workers, defined as workers employed more than 35 hours per week for at least 48 weeks in the previous year. 數據文件wage04.wf1包含4,500名全職工人的數據。全職工人的定義是在過去一年中至少48周每周工作超過35小時的。Specific variables include: 具體的變量包括：
 
Female:  1 if female; 0 if male
Age:     Age of the worker
Log(AHE):   Log of Average Hourly Earnings
Bachelor :   1 if worker has a bachelor’s de gree; 0 if worker has a high school degree
 
(i)Use this data to estimate the regression and report the results: 使用這些數據來估計回歸，并報告結果：
??What does the coefficient on the inte raction term measure?    (2 marks)
 
(ii)Alexis is a 30 year old female w ith a bachelor’s degree. Alexis是一個擁有學士學位的30歲婦女。 Using the results obtained in (i) what does the regression predict for her value of Log(AHE)? 利用(i)所得到的結果，她的Log（AHE）回歸預測值是多少？Jane is a 30 year old female with  a high school degree. Using the results obtained in (i) what does the regression predict for her value of Log(AHE)? What is the difference in the Log of Average Hourly Earnings between Jane and Alexis? How much would this difference be if Jane was in fact Jack (ie a male)?         (4 marks)
(iii)Is the effect of Age on earnings di fferent for male than for female? Specify and estimate a regression that you can use to answer this question. Report your  results.         (2 marks)  (iv)  Which specification do  you prefer - th e specification estimat ed in (i) or the specification estimated in (iii)? Ju stify your answer.     (3 marks)#p#分頁標題#e#
 
(v)Alexis is a 30 year old female with  a bachelor’s degree. Using the results obtained in (iii) what does the regression predict for her value of Log(AHE)? Jane is a 30 year old female with  a high school degree. Using the results obtained in (iii) what does the regression predict for her value of Log(AHE)? What is the difference in the Log of Average Hourly Earnings between Jane and Alexis? How much would this difference be if Jane was in fact Jack (ie a male)?         (4 marks)
 
Question 2 問題二 (15 marks)
       
During the 1960s it was thought that  aid would supplement domestic savings in less developed countries allowing for hi gher investment and thus higher growth. 在20世紀60年代，人們認為援助通過允許較高投資，和較大幅度增長可以補充欠發達的國家的國內儲蓄。 However, an author argued that aid would displace at least some domestic saving, casting doubt on this belief. That is, the rise  in investment resulting from higher aid would be rather less than the one-to-one increment assumed in the optimistic 1960s growth models. That is, if
 
where Cons is consumption,  Y is income,  A is aid and  e  is an error term. Then given http://ukthesis.org/jjxzy/ savings,  S = Y - Cons it follows,
 
(i)The data file aidsav.wf1 contains data on  S,  Y and  A for 66 countries for 1987. Use this data to estimate the relationship defined in equation (1) and present your results. 使用此數據，來估計方程（1）中定義的關系，并介紹你的結果。Test for the presence of heteroskedasticity. Note in your answer you will need to perform a hypothesis test clearly stating the null and alternative hypotheses. Given the results of this  test what do you conclude about your estimation results?       (5 marks)
 
(ii)To solve the problem in (i) you are told there is a  strong possibility that      and to account for this in your estimation will require transforming equation (1). Suppose you  transform equation (1) by ignoring the intercept term in equation (1) and then dividing by  Y  which suggests the model given in equation (2),  Estimate the model in (2) and report your results.  (2 marks)
 
(iii)You realize you have in correctly transformed equation (1). 你感覺你已經正確地轉換了方程（1）。Derive the equation you should have estimated. What is the  difference between the equation you now derive and the one estimated in (ii)?  What then can you conclude about the estimate of  ? using the model in (ii)?     (4 marks)
 
(iv)If you are also told that, do you think the estimate of  ?  should be larger or smaller than the result presen ted in (ii). You will need to justify your answer.         (3 marks)#p#分頁標題#e#
 
(v) Estimate the model using the correct tr ansformation you derived in (iii).使用在（iii）中得出正確的轉換方程估計模型。Does the estimate of  ?  agree with what you concluded in (iv) above?    (1 mark)