Identify a simple expression for the iv estimator
Consider the single equation model yi=ziB+ri where the real valued let the B^ denoted the IV estimator of B^ using as an instrument a dummy variable di. Identify a simple expression for the IV estimator in the context.
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A representative firm with short-run total cost given by the TC = 50 + 2q + 2q2 operates in a competitive industry where the short-run market demand and supply curves are given by the QD = 1,690 - 40P and QS = -390 + 20P.
To determine the growth in GDP, use the compounding growth function: p0 x (1+ r)t where the p0 is the original value of 100, r is the growth rate (for example, a growth rate of 2.1%
An American consumer have come to accept the high gasoline prices, and calculates the world prices for the gasoline to increase even further with high demand from India and China.
Superstar actors typically get contracts that identify that they get a percentage of "the gross," the total revenues that the movie brings in. Discuss why might actors want contracts structured that way?
Assume a monopoly firm produces the software and can sell the 20 items per month at a price of $70 each. In order to increase sales by one item per month, the monopolist must lower the price of its software by the $5 to $65. The marginal revenue o
Suppose you are a Yankees fan, so you place a bet on each game played where you win $100 if the Yankees win the game and you lose $105 if the Yankees lose the game. Find the distribution of your net winnings. Then find the expected net winnings?
Critically discuss at least two price-setting strategies that are commonly used by airline companies and calculate the impacts of such pricing methods on the demand for seats and the firm's profits.
Suppose that the nominal interest rate on 10 year bonds is the 10% at home and 6% abroad. Further assume inflation is expected to be 3% abroad and 6% at home.
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