[Solved] a) Interpret the coefficients on EXP, Exp2, and Edu and the Dummy variable. Check whether the dummy variable is sta

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[Solved] a) Interpret the coefficients on EXP, Exp2, and Edu and the Dummy variable. Check whether the dummy variable is statistically significant at the 5% level based on the p-value method.

In this assignment, you are asked to retrieve the data from South Korea then run a multiple regression with the command. You must interpret the coefficients on EXP, Exp2, edu and the dummy variable. Furthermore, you are asked to identify if the variable is statistically significant at the 5% level based on the p-value method. Finally, you are asked to provide regression results separately for men and women.    

Assignment # 4

1.   Retrieve the data for South Korea ( for the Cobb-Douglas Production function) from D2L   in Excel  and import the data in Eviews.  Generate the logs of L,K,and rgd. Note: L=labour, K=capital, rgd = real gdp. In Eviews  you will click “quick” and select “generate” option. Example, lY = log (rgd),  lk=log(K), ll =log(L).

Then run a multiple regression with the command:  ly  c  ll  lk

a)      Interpret the coefficients on ll and lk, and  adjusted R-square.

b)      Examine at the 1% significance level, based on the p-value method,  whether the coefficients on ll and lk are significant.

1. Refer to the regression model in question 1. Formally test at the 1% significance level, based on the F-test ( p-value method) whether the production function shows constant returns to scale.

    Note: After running regression for question 1, select “View” and “coefficient diagnostic “ test, and Wald test and then type:  C(2) + C(3) =1

1. Retrieve the data file Slid3 ( from D2l) and download in Excel. In Excel create one data file for men, called Slid(Men) and another called Slid (Women).

   The file has the following variables: Age, Gender, Exp (experience), WS ( wages and salaries), and Edu( years of education).

   Note: in the original there is a variable called Gender which has a value of 1 for men and 2 for women. To create a file for men, click filter and gender. In the relevant place, choose  gender< 2.  To create a file for women you will choose >1.

Import the file for men , generate log of ws, called lws and also generate the square of  age, called age2,  and square of Exp, called EXP2 and then run the following regressions:

Lws c age age2 edu             ( for men)

Lws c age age2 edu          ( for women)

Compare the results.

1. Use the same database as for question 3 and run the following regression models.

Lws c Exp Exp2 edu             ( for men)

Lws c Exp Exp2 edu          ( for women)

Compare the results.

1. Use the original data file, SLID3. Do not split the file into two files  ( for men and women)

  Generate a dummy variable, called dummy in Eviews:

  Dummy = (gender

Run the following regression model:

Lws c exp exp2 dummy edu

a)       Interpret the coefficients on EXP, Exp2, and Edu and the Dummy variable. Check whether the dummy variable is statistically significant at the 5% level based on the p-value method.

b)      Write the regression results separately for men and women.