econ 513 final exam
University of Southern California
Econ 513
Spring 2012–2013
Prof. Sakata
Final Examination
Date: Tuesday, April 14, 2013
Instruction:
(a) This is a two-hour, closed-book exam. Put away everything but pens, pencils, erasers, and a numeric calculator. (b) Write your name and student ID on the front pages of the exam and its appendix, and continue to read this instruction. Do NOT look at other pages, however, until you are told to start to write the exam.
(c) Solve all problems.
(d) Fully justify each of your answers, unless otherwise indicated. (No credit will be given to answers without justification.)
(e) Write your answer to each problem in the space given below the problem. You may freely use back sides, but everything on the back sides will be ignored when this exam is graded.
(f) Each of your answers should be compact, but it must be clear and precise. Never use idiosyncratic notation. (g) Never ask your classmate to turn in your exam. It is your responsibility to turn it in.
(h) Do NOT speak with other students until you turn in your exam AND LEAVE THE EXAM ROOM.
(i) You may not leave the exam room in the last five minutes of the exam. Stay in your seat until the proctor collect your exam and dismiss the class.
(j) Our university holds academic integrity as a core value of the institution. Cheating on exams and any acts helping such a misconduct would result in very severe penalties.
1. (5 minutes, 12 points)
Answer the following questions.
(i) Precisely state the null hypothesis in the overidentifying restrictions tests in the IV regression such as
Hansen’s J test.
(ii) Define the term “probit model”.
(iii) Describe the protocol of the randamized controlled experiments.
2. (15 minutes, 20 points)
Suppose that y1 , y2 , y3 , z1 , z2 are random variables that satisfy that y1 = β10 + β11 y3 + β12 z1 + u1
(1)
y2 = β20 + β21 y1 + β22 y2 + β23 z1 + u2
(2)
y3 = β30 + β31 z2 + u3
(3)
where β10 , β11 , β12 ,
Econ 513
Spring 2012–2013
Prof. Sakata
Final Examination
Date: Tuesday, April 14, 2013
Instruction:
(a) This is a two-hour, closed-book exam. Put away everything but pens, pencils, erasers, and a numeric calculator. (b) Write your name and student ID on the front pages of the exam and its appendix, and continue to read this instruction. Do NOT look at other pages, however, until you are told to start to write the exam.
(c) Solve all problems.
(d) Fully justify each of your answers, unless otherwise indicated. (No credit will be given to answers without justification.)
(e) Write your answer to each problem in the space given below the problem. You may freely use back sides, but everything on the back sides will be ignored when this exam is graded.
(f) Each of your answers should be compact, but it must be clear and precise. Never use idiosyncratic notation. (g) Never ask your classmate to turn in your exam. It is your responsibility to turn it in.
(h) Do NOT speak with other students until you turn in your exam AND LEAVE THE EXAM ROOM.
(i) You may not leave the exam room in the last five minutes of the exam. Stay in your seat until the proctor collect your exam and dismiss the class.
(j) Our university holds academic integrity as a core value of the institution. Cheating on exams and any acts helping such a misconduct would result in very severe penalties.
1. (5 minutes, 12 points)
Answer the following questions.
(i) Precisely state the null hypothesis in the overidentifying restrictions tests in the IV regression such as
Hansen’s J test.
(ii) Define the term “probit model”.
(iii) Describe the protocol of the randamized controlled experiments.
2. (15 minutes, 20 points)
Suppose that y1 , y2 , y3 , z1 , z2 are random variables that satisfy that y1 = β10 + β11 y3 + β12 z1 + u1
(1)
y2 = β20 + β21 y1 + β22 y2 + β23 z1 + u2
(2)
y3 = β30 + β31 z2 + u3
(3)
where β10 , β11 , β12 ,