IV estimators are 2SLS estimators. An IV estimator is the sample analog of the form: $\beta = \frac{Cov(Y, Z)}{Cov(X, Z)}$, where $Y$ is the outcome variable, $X$ is the endogenous variable, and $Z$ ...

It is true that we are usually interested in minimizing convex functions or maximizing concave functions, typically over convex sets. But I think you have two confusions: The profit function is the ...

I'm not super clear about the policy here regarding self study questions. I'll give a hint for now. You can translate the question into: finding the present value of a perpetuity, which is the ...

The cross elasticity of demand $E_{XY}^D$ is defined as the percent change in quantity demanded for X divided by the percent change in price of Y, holding the price of X fixed. The problem with your ...

Since Q1 has been solved, I'll focus on Q2. Yes, it's possible to remove a sample point that is not on the regression line but still yields $b_{1}=b_{1}'$ and $b_{0}\ne b_{0}'$. Such points have the ...

One explanation from psychology and behavioral economics is "mental accounting": people put different transactions into different mental accounts. When buying a house, people are imaging (probably ...

The short answer: we don't need a separate term for "foregone cost", because opportunity cost of doing something = highest (forgone benefit - foregone cost). I'd like to stress two points about ...

Adopting your notation, the vacancy rate at any given time is defined as $A/Q$. There is no mechanical relationship between the unemployment rate $U/Q$ and vacancy rate (A/Q). They are negatively ...

In your context, Slutsky Equation says, after $p_x$ increases from 1 to 4, the following is true: \begin{align*} \text{total demand change in $x$} & \\ = \text{demand change in $x$, keeping $U$ ...

Adopting your notations, $E = P \times Q$. Taking natural log for both sides, we have $\log E = \log P + \log Q$. When the percent change of some quantity, $\Delta x / x$, is small, we can ...

First, the interpretation of $\eta=\frac{\partial\log y}{\partial\log x}$ and $\eta'=\frac{\partial y}{\partial x}$ are different. $\eta$ is the ratio of percent change and $\eta'$ is the ratio of ...

mean command with pweight gives you mean and sd estimates, which in turn gives you estimate of the coefficient of variation. pctile also takes pweight. It will generate percentiles. kdensity only ...

Labor productivity, as measured by output per worker or output per worker hour, is a function of many factors. Let me mention a few in the framework of growth theory. Many economists consider at least ...

For annual individual-level earnings data: From 1962: try Current Population Survey (CPS) https://cps.ipums.org/cps/intro.shtml From 2000, try American Community Survey (ACS) https://usa.ipums.org/...

Consumer's problem We assume monotone concave utility function, that is, diminishing marginal utilities and binding budget constraint. The first order condition is: \frac{P_A}{P_B} = \frac{\text{...