A data set that has observations on one entity at multiple points in time is classified as
a). time series data
b.) cross-section data
c.) panel data
d.) flow data
What are reduced form equations in a system of equations?
a.) the structural equations rewritten with endogenous variables as a function of
exogenous variables
b.) the structural equations without the endogenous regressors
c.) the exogenous variables reworked as a function of the other exogenous variables
d.) the equations remaining when the parameters of structural equations are reduced to
generate additional degrees of freedom
In which case should a VAR model be used rather than a VEC model?
a.) the series are I(1)
b.) all series are stationary
c.) the series are not cointegrated
d.) you have more than 2 series
When an equation is estimated for each individual jointly, taking into account
contemporaneous correlation the resulting model is a(n)
a.) Hausman-Taylor model
b.) SUR
c.) ECM
d.) VEC
How should you estimate a model with heteroskedasticity when you are confident the
error variance is a function of one continuous variable?
a.) WLS or GLS
b.) White Robust
c.) FGLS
d.) Quasi-Least Squares
Which of the following variables is not necessary in order to estimate treatment effects
using difference-in-differences?
a.) a treatment/control indicator
b.) pre-treatment / post-treatment indicator
c.) treatment group * treatment time interaction term
d.) post-treatment performance
In a multi-equation model the jointly determined variables are referred to
as____________.
a.) exogenous
b.) explanatory
c.) regressors
d.) endogenous
Which test for heteroskedasticity should you use if you suspect different variances of
the error term for different groups of observations?
a.) White test
b.) Lagrange Multiplier test
c.) Goldfeld-Quandt test
d.) Chow Test
If Z is a random variable generated by adding together X and Y which are also random
variables, what do we know about var(Z) if X and Y are positively correlated.?
a.) var(Z) = var(X) + var(Y)
b.) var(Z) < var(X) + var(Y)
c.) var(Z) > var(X) + var(Y)
d.) var(Z) = var(X) * var(Y)
If heteroskedasticity is suspected, all of the following could be used to test for it
EXCEPT
a.) Lagrange Multiplier test
b.) Jarque-Bera test
c.) Breusch-Pagan test
d.) White test
How does omitting a relevant variable from a regression model affect the estimated
coefficient of other variables in the model?
a.) they are biased downward and have smaller standard errors
b.) they are biased upward and have larger standard errors
c.) they are biased and the bias can be negative or positive
d.) they are unbiased but have larger standard errors
If L is the number of exogenous instruments and B is the number of endogenous
regressors in the model, when L > B the model is
a.) just identified
b.) over identified
c.) under identified
d.) perfectly identified
When collinear variables are included in an econometric model coefficient estimates are
a.) biased downward and have smaller standard errors
b.) biased upward and have larger standard errors
c.) biased and the bias can be negative or positive
d.) unbiased but have larger standard errors
What estimation technique should be used to estimated parameters in an unidentified
structural equation?
a.) none-no techniques exist
b.) OLS
c.) 2SLS
d.) GLS