In the example in equation (7.29), suppose that we define outlf to be one if the woman
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(i) If we regress outlf on all of the independent variables in equation (7.29), what will happen to the intercept and slope estimates? (inlf = 1 - outlf. Plug this into the population equation inlf = (0 + (1 nwifeinc + (2 educ + ... and rearrange.)
(ii) What will happen to the standard errors on the intercept and slope estimates?
(iii) What will happen to the R-squared?
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Related Book For
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
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