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日期：2020-01-24 09:59

Assignment #1

ECON 323: Econometric Analysis 2 - Winter 2020

Due January 23, 2020, 10am in class

Instructions: While cooperating on the assignment is encouraged, plagiarism

is not. I will only accept hand written assignment submitted in

person. DO NOT SUBMIT YOUR ASSIGNMENT ELECTRONICALLY.

No late assignment will be accepted; late assignments (after 8:30am on the

due date) will receive a mark of zero. Show your work as no marks will be

allocated for the final answer alone.

Use Stata or R to do these. If you choose to use another software, please

get my approval at least a week before the assignment is due.

Question 1

Using the Retirement Survey 1975 available from Odesi, answer the following

questions.

(a) Regress whether the indivdidual receives a pension from their employer

(consider this to be a continuous and normally distributed variable for

the purposes of this question at this stage) on marital status, the province of

residence, gender and the age the individual was when they left their longest

employer . Report your results in equation form.

(b) Together, how much of the variation in marital status and procvince

of residence explain?

(c) If an observation in the sample is such that the individual is a married

female that lives in quebec and stayed with their longest ever employer until

the age of 65, what is the predicted probability that they receive a pension

from an employer?

(d) This individual receives a pension. Calculate the residual.

(e) Perform a t-test of the equality of the coefficient of age to 0.01 at 5%

of statistical significance.

(f) Should you include gender and age in your regression? Discuss.

(g) Is heteroskedasticity present in this model?

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(h) Now treat whether individuals have a pension from their employer as

the type of variable it should be and go back to assuming homoskedasticity,

regardless of your results in (g). Repeat questions (a), (e), and (f) using

the correct estimation method and report the “new answers”. Has anything

changed? Why?

(i) What is the average marginal effect for age at which they left their

longest employer in this regression? Why should you consider the AME

rather than the coefficient in this situation?

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