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    Homework 10

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    José Serrano
    1. The document provides an econometrics problem set analyzing the relationship between girls' math scores and type of high school attended using a dataset from Quito, Ecuador. It discusses including control variables like family income, parents' education levels. It also addresses issues like omitted variable bias from unmeasured factors like parental support. 2. The problem uses a dataset on Peruvian women in 2009 to estimate the relationship between education and fertility using OLS. It finds that an additional year of education reduces expected fertility by 0.9 children. It proposes and tests using date of birth as an instrumental variable for education to address endogeneity issues. 3. It adds control variables for electricity, television and bicycle ownership and

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    Homework 10

    Uploaded by

    José Serrano
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    1. The document provides an econometrics problem set analyzing the relationship between girls' math scores and type of high school attended using a dataset from Quito, Ecuador. It discusses including control variables like family income, parents' education levels. It also addresses issues like omitted variable bias from unmeasured factors like parental support. 2. The problem uses a dataset on Peruvian women in 2009 to estimate the relationship between education and fertility using OLS. It finds that an additional year of education reduces expected fertility by 0.9 children. It proposes and tests using date of birth as an instrumental variable for education to address endogeneity issues. 3. It adds control variables for electricity, television and bicycle ownership and

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    1. The document provides an econometrics problem set analyzing the relationship between girls' math scores and type of high school attended using a dataset from Quito, Ecuador. It discusses including control variables like family income, parents' education levels. It also addresses issues like omitted variable bias from unmeasured factors like parental support. 2. The problem uses a dataset on Peruvian women in 2009 to estimate the relationship between education and fertility using OLS. It finds that an additional year of education reduces expected fertility by 0.9 children. It proposes and tests using date of birth as an instrumental variable for education to address endogeneity issues. 3. It adds control variables for electricity, television and bicycle ownership and

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    86 views3 pages

    Homework 10

    Uploaded by

    José Serrano
    1. The document provides an econometrics problem set analyzing the relationship between girls' math scores and type of high school attended using a dataset from Quito, Ecuador. It discusses including control variables like family income, parents' education levels. It also addresses issues like omitted variable bias from unmeasured factors like parental support. 2. The problem uses a dataset on Peruvian women in 2009 to estimate the relationship between education and fertility using OLS. It finds that an additional year of education reduces expected fertility by 0.9 children. It proposes and tests using date of birth as an instrumental variable for education to address endogeneity issues. 3. It adds control variables for electricity, television and bicycle ownership and

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    Advanced Econometrics

    AES910

    Problem Set 10

    Due: Wednesday, June 19th, 2019


    Total Points: 10
    1. Suppose you graduated from a mixed high school and your friend told you that girls who
    attended girls only high schools do better in math than those who attended mixed high
    schools. Suppose your professor of Advanced Econometrics (me) gives you a data set with
    a random sample of senior high school girls from Distrito Metropolitano de Quito. This is
    your opportunity to prove your friend hypothesis! In the data set you have the variable
    score which is the score on the “ser bachiller” math test, you also have the variable
    girlschool which is a dummy variable indicating whether a student attends a girls only high
    school.
    a) What other factors would you control for in the equation? (You should be able to
    reasonably collect data on these factors.) 

    Las variables más fáciles de medir son: ingreso de la familia, nivel de educación del padre
    y nivel de educación de la madre.

    b) Write an equation relating score to girlschool and the other factors you listed in part (i).
    𝑆𝑐𝑜𝑟𝑒 = 𝛽0 + 𝛽1 𝑔𝑖𝑟𝑙𝑠𝑐ℎ𝑜𝑜𝑙 + 𝛽2 𝑖𝑛𝑔𝑓𝑎𝑚𝑖𝑙𝑖𝑎 + 𝛽3 𝑒𝑑𝑢𝑐𝑝𝑎𝑑𝑟𝑒 + 𝛽4 𝑒𝑑𝑢𝑐𝑚𝑎𝑑𝑟𝑒 + 𝑢

    c) Suppose that parental support and motivation are unmeasured factors in the error
    
 term in part (ii). Are these likely to be correlated with girlschool? Explain. 

    Los padres que motiven y apoyen a sus hijas en el colegio tienden a sobreprotegerlas con
    la finalidad de que mantengan esa línea de responsabilidad en las materias de la escuela.
    Por esta razón, es posible que este tipo de padres tengan la necesidad de inscibir en un
    colegio femenino, por lo que girlschool y u están correlacionadas.

    d) Discuss the assumptions needed for the number of girls’ high schools within a 
 20-mile
    radius of a girl’s home to be a valid IV for girlschool. 

    Si denotamos a numghs como el número de colegios de niñas en un radio menor a 20
    millas, se deberían cumplir dos condiciones.
    𝑐𝑜𝑣(𝑔𝑖𝑟𝑙𝑠𝑐ℎ𝑜𝑜𝑙, 𝑛𝑢𝑚𝑔ℎ𝑠) ≠ 0
    𝑣𝑎𝑟(𝑢, 𝑛𝑢𝑚𝑔ℎ𝑠) = 0
    Se podría decir que existe un problema al evaluar la varianza entre el error y numghs ya
    que pueden existir factores como las preferencias por asistir a escuelas públicas o
    privadas. Hay casos específicos en los que el puntaje de un estudiante no está ligado a
    ninguno de los factores que se especifican en la ecuación.

    e) Suppose that, when you estimate the reduced form for girlschool, you find that
    the
 coefficient on numghs (the number of girls’ high schools within a 20-mile radius)
    is negative and statistically significant. Would you feel comfortable proceeding with IV
    estimation where numghs is used as an IV for girlschool? Explain. 


    2. The dataset family includes, for women in Perú during 2009, information on family size and
    education, religious and economic status variables.
    a) Estimate the model

    

    by OLS, and interpret the estimates. In particular, holding age fixed, what is the
    estimated effect of another year of education on fertility? If 100 women receive another
    year of education, how many fewer children are they expected to have? 


    Variable Coefficient Std. Error t p-value


    Constante -4.1383 0.2405 -17.200 <2e-16
    educ -0.09057 0.0059 -15.298 <2e-16
    Age 0.3324 0.0165 20.088 <2e-16
    agesq -0.0026 0.0002 -9.561 <2e-16
    R-cuadrado 0.5684

    El resultado indica que con año más de educación de las mujeres de Perú , la tasa de
    natalidad se reduce en 0.9

    b) The variable fsixmoths is a dummy variable equal to one if the woman was born during
    the first six months of the year. Assuming that fsixmoths is uncorrelated with the error
    term from part (i), show that fsixmoths is a reasonable IV candidate for educ. (Hint: You
    need to do a regression.) 

    Fsixmoths tiene un gran efecto sobre la variable educ. Este efecto puede estar explicado
    porque las mujeres comienzan la escuela en el mismo mes del año una vez que han
    alcanzado la edad necesaria para poder estudiar.

    Variable Coefficient Std. Error t p-value


    Constante 9.6928 0.5980 16.20 <2e-16
    fsixmoth -0.8522 0.1128 -7.554 5.12e-14
    Age -0.1079 0.0420 -2.568 0.0103
    agesq -0.00050 0.00069 -0.730 0.4657
    R-cuadrado 0.1077

    c) Estimate the model from part (i) by using fsixmoths as an IV for educ. Compare the
    estimated effect of education with the OLS estimate from part (i). 


    d) Add the binary variables electricity, television, and bcycle to the model and assume
    these are exogenous. Estimate the equation by OLS and 2SLS and compare the
    estimated coefficients on educ. Interpret the coefficient on television and explain why
    television ownership has a negative effect on fertility.

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