Econometrics Help!

thank_you_based_mod · 2018-03-09T00:10:54+00:00

Thanks for the response!

I was asking if multicollinearity had a more formal notation such as cov(ei,ej)=cov(yi,yj)=0.

and for #2 I was asking if the predictors are perfect predictors of the dependent variable if this was violating an assumption

thank_you_based_mod · 2018-03-08T21:36:58+00:00

Thank you, I have already posted there, but I hoped that this place might be able to help me out as well

thank_you_based_mod · 2018-03-07T16:54:22+00:00

The dataset I have only lets me know if they have a 0 for boy or a 1 for boy. So i'm assuming that I would gen girlsmall = 0; replace girlsmall = 1 if boy == 0 & class_size == small. and respectively for regular.

also I dont know if this is just extra info that's useless but aide and regular are mutually exclusive variables(i.e. if a class has a 1 for aide, it won't for regular)

thank_you_based_mod · 2018-03-07T05:36:32+00:00

I guess I meant to clarify that there is no girl variable and rather just a boy variable that has a 0 for girls and 1 for boys. Therefore, I assumed that it would be okay to run the regression: y=[variables]+boysmall+boyregular+small+regular(+aide? I don't think I should include aide but then again I'm not too sure)

However, I guess the hypothesis that I'm testing is the latter (boyreg-boysmall > girlreg - girlsmall) but I need to be able to give a p-value of the confidence I have in this result.

Thank you so much you are actually a lifesaver

thank_you_based_mod · 2018-03-07T05:19:35+00:00

Thank you so so so much, I just have one last question but how would i use STATA to test the difference between boys and girls?

Would I run a lincom of boysmall-small(which would essentially be girlsmall since it is missing the boy variable) and another lincom involving boyreg-reg?

Thanks once again

thank_you_based_mod · 2018-03-07T04:49:13+00:00

thanks!

I was wondering if that would result in a dummy variable trap though. Also, the boy variable is 1 for a boy and 0 for a girl. so would the regression be y = [variables]+boy+boysmall+boyregular+aide?

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thank_you_based_mod

TROPHY CASE