Question: Use VOTE 1.RAW for this exercise. (i) Estimate a model with voteA as the dependent variable and prtystrA, democA, log(expendA), and log(expendB) as independent variables.

Use VOTE 1.RAW for this exercise.
(i) Estimate a model with voteA as the dependent variable and prtystrA, democA, log(expendA), and log(expendB) as independent variables. Obtain the OLS residuals, u, and regress these on all of the independent variables. Explain why you obtain R2 = 0.
(ii) Now, compute the Breusch-Pagan test for heteroskedasticity. Use the F statistic version and report the p-value.
(iii) Compute the special case of the White test for heteroskedasticity, again using the F statistic form. How strong is the evidence for heteroskedasticity now?

Step by Step Solution

★★★★★

3.36 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

i ii iii The estimated equation is voteA 3766 252 prtystrA 3793 democA 474 071 1407 5779 logexpendA ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

839-M-E-E-A (631).docx

120 KBs Word File

Students Have Also Explored These Related Econometric Questions!

Use the data in WAGE 1 .RAW for this exercise. (i) Estimate the equation wage = (0 + (1educ + (2exper + (3tenure + u. Save the residuals and plot a histogram. (ii) Repeat part (i), but with log{wage)...

Use the data in WAGE 1 .RAW for this exercise, (i) Use OLS to estimate the equation log(wage) = (0 + (1 educ + (2 exper + (3 exper2 + u and report the results using the usual format. (ii) is exper2...

Use the data in WAGE 1 .RAW for this exercise. (i) Use equation (7.18) to estimate the gender differential when educ = 12.5. Compare this with the estimated differential when educ = 0. (ii) Run the...

C4 Use VOTE1.RAW for this exercise. (i) Estimate a model with voteA as the dependent variable and prtystrA, democA, log(expendA), and log(expendB) as independent variables. Obtain the OLS residuals,...

C8.4 Use VOTE1.RAW for this exercise. (i) Estimate a model with voteA as the dependent variable and prtystrA, democA, log(expendA), and log(expendB) as independent variables. Obtain the OLS...

Use VOTE1 for this exercise. (i) Estimate a model with voteA as the dependent variable and prtystrA, democA, log(expendA), and log(expendB) as independent variables. Obtain the OLS residuals, u^i ,...

Exercise 1 Suppose we would like to test how accurate home value assessments are in comparison to the prices that the homes ultimately sell for, i.e., test the rationality of assessments of housing...

Write 2 paragraphs about Macro risks and the term structure of interest rates article. No max word count, page count, or formatting requirements but has to be submit to my tutor's work as my own....

**Please Provide STATA output** Several years ago, an airplane pilot took this course. For his project he estimated a model of the determinants of used, single-engine airplane prices in the year...

Exercises Chapter 2 2.1 Marginal and conditional probability: The social mobility data from Section 2.5 gives a joint probability distribution on (Y1 , Y2 )= (father's occupation, son's occupation)....

Which of the following investors are entitled to the current dividend? Investor Transaction Date Monday, MayI Monday, February 28 Wednesday, September l5 Thursday, June 28 Record Date Wednesday, May...

How many molecules of O2 will react with 6.022 1023 molecules of H2 to make water? The reaction is 2H2(g) + O2(g) 2H2O().

The current value of the S&P 5 0 0 stock index is 3 , 0 9 3 and its expected dividend yield is 1 . 2 % . The risk - free rate is 2 . 5 % for all maturities ( both continuously compounded ) . If the...

a. Show that B and B are both unbiased estimates of in the constrained model. b. Show that the matrix BG(XX) is positive definite. e. Establish the relation between QB) and Q(3) shown in (17.37) and...

You are given the following data based on 15 observations: = 367.693; 2 = 402.760; 3 = 8.0; y2i = 66,042.269 x22i = 84,855.096; x23i = 280.0; yix2i= 74,778.346 yix3i = 4,250.9; x2ix3i = 4,796.0...

A three-variable regression gave the following results: a. What is the sample size? b. What is the value of the RSS? c. What are the d.f. of the ESS and RSS? d. What is R2? And 2? e. Test the...

Explain briefly what is meant by a. Log-log model b. Log-lin model c. Lin-log model d. Elasticity coefficient e. Elasticity at mean value

Ultratech, Inc., manufactures several different types of printed circuit boards; however, two of the boards account for the majority of the companys sales. The first of these boards, a television...

What is the p value HW Score: 16.86%, 0.84 14.5.32 Question Help Consider the following set of ordered pairs. x 2 6 1 3 30 y 5 10 4 8 6 Assuming that the regression equation is y = 2.957 + 1.214x and...

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $3 million at the end of 2019. Carlsbad is at full capacity, so its...