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Introduction to Econometrics 3rd Edition by James Stock, James Stock
Edition 3ISBN: 978-9352863501Introduction to Econometrics 3rd Edition by James Stock, James Stock
Edition 3ISBN: 978-9352863501 Exercise 20
Read the box "The Demand for Economics Journals" in Section 8.3.
a. The box reaches three conclusions. Looking at the results in the table, what is the basis for each of these conclusions
b. Using the results in regression (4), the box reports that the elasticity of demand for an 80-year-old journal is 0.28.
i. How was this value determined from the estimated regression
ii. The box reports that the standard error for the estimated elasticity is 0.06. How would you calculate this standard error
c. Suppose that the variable Characters had been divided bY₁000 instead of 1,000,000. How would the results in column (4) change
a. The box reaches three conclusions. Looking at the results in the table, what is the basis for each of these conclusions
b. Using the results in regression (4), the box reports that the elasticity of demand for an 80-year-old journal is 0.28.
i. How was this value determined from the estimated regression
ii. The box reports that the standard error for the estimated elasticity is 0.06. How would you calculate this standard error
c. Suppose that the variable Characters had been divided bY₁000 instead of 1,000,000. How would the results in column (4) change
Explanation
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a1) To check the validity of the conclus...
Introduction to Econometrics 3rd Edition by James Stock, James Stock
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