Question 1.

A researcher is interested in identifying the impact of a mother’s education on the educational attainment of her children. The researcher collects data on a random sample of individuals aged between 25 and 40 who have exited the schooling system.

The data set contains information on each person’s level of schooling, type of school, gender, and ethnicity, as well as information on the schooling of their parents and the demographic characteristics of the household in which they grew up.

The researcher plans to regress years of schooling achieved by an individual on the years of schooling of their mother, including as controls in the regression the other potential determinants of schooling (gender, ethnicity, number of siblings, whether parents lived together or were separated). Write the econometric model. Explain how the effect of mother’s education on children’s education can be tested. Discuss problems and issues.

Question 2.

Construct an econometric model to analyze the determination of wage. Explain how you would test
the presence of an effect of gender on wage. Explain how the presence of such effect would alter the regression
line.

Question 3.

Construct a model of the effect of the quality political institutions () on economic growth. Discusspossible issues with your model. () Look also at Question 6.

Question 4.

Construct a model of the effect of advertising on sales of a product. Discuss possible issues with your
model.

Question 5.

Explain how to design and conduct an experimental study of the effect of social media on
psychological depression. Discuss possible issues with your study.

Question 6.

Consider the following model of human rights:
( )
[3.05] [0.33] [0.82] [9.01]
N = 63, ̂

Where jud. indep = judicial independence, log(GDP p.c.) = natural logarithm of real GDP per capita, democ = democracy. What does the coefficient of log(GDP p.c.) mean? Test the overall explanatory power of the model.

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