Economics MCQ Econometrics Where voted is a dummy variable that equals 1 if the individual voted, and black and Hispanic are dummy variables for census demographic categories (the omitted category is white). He wants to interpret the magnitude of the coefficient on the male dummy. What do you suggest he does?

Where voted is a dummy variable that equals 1 if the individual voted, and black and Hispanic are dummy variables for census demographic categories (the omitted category is white). He wants to interpret the magnitude of the coefficient on the male dummy. What do you suggest he does?

Naim 10:23 Econometrics

Your analyst runs the following probit regression model:
Voted_hat = 0.35 + 0.21Male + 0.18Black + 0.05*Hispanic

Where voted is a dummy variable that equals 1 if the individual voted, and black and Hispanic are dummy variables for census demographic categories (the omitted category is white). He wants to interpret the magnitude of the coefficient on the male dummy. What do you suggest he does?

A. Re-run the model using two-stage least squares
B. Re-run the model without including black or Hispanic
C. Calculate the correlation coefficient
D. Calculate the marginal effects

Answer: D. Calculate the marginal effects

Economics MCQ

Where voted is a dummy variable that equals 1 if the individual voted, and black and Hispanic are dummy variables for census demographic categories (the omitted category is white). He wants to interpret the magnitude of the coefficient on the male dummy. What do you suggest he does?

Where voted is a dummy variable that equals 1 if the individual voted, and black and Hispanic are dummy variables for census demographic categories (the omitted category is white). He wants to interpret the magnitude of the coefficient on the male dummy. What do you suggest he does?

Learn More :

Share this