GSIʹsName_______________________________ YourName_________________________DepartmentofEconomics Fall2006UniversityofCalifornia,Berkeley ProfessorOlneyProblemSet#2Due:atthebeginningoflecture onTuesday,October31,2006Bringyourproblemsettolectureandturnitinatthebeginningofclass.ProblemsetsarelateiftheyarenotreceivedbythetimeProf.Olneystartslecture.Lateproblemsetswilllose2.5pointsper24hoursoranypartthereof.ProblemsetsshouldNOTbeleftinGSImailboxes.WearenotresponsibleforproblemsetsthatarenothandeddirectlytoyourGSIortoProf.Olney.Usetheregressionresultssummarizedinthetablebelowtoanswerthequestions.Writeyouranswersinthespaceprovided.DeterminantsofHighSchoolGraduationRates,1910,1928(standarderrorsareinparentheses)1910 1928logpercapitawealth 0.236(0.09)0.852(0.37)%population$65yrsold 2.13(0.26)1.423(0.79)%laborforceinmanufacturing ‐0.067(0.034)‐0.144(0.097)%populationCatholic ‐0.0913(0.031)‐0.377(0.09)Autoregistrationspercapita 0.0568(0.02)South(0/1dummyvariable) ‐0.0449(0.01)‐0.0935(0.03)NewEngland(0/1dummyvariable) 0.0444(0.01)0.100(0.03)Constant ‐0.136(0.07)‐0.468(0.27)R20.895 0.874n4848Source:Goldin&Katz,“HumanCapitalandSocialCapital,”Table1.QuestionsareonthebacksideDepartmentofEconomics Fall2006UniversityofCalifornia,Berkeley Economics113ProblemSet#2 Page2of21. (1½points)Supposetwostatesarealikeinallregards,exceptthatonestateisintheSouthandoneisinNewEngland.a. Whatwillbethepredicteddifferenceintheirhighschoolgraduationratesin1910?In1928?b. Doesitmakesensethatthepredicteddifferencesarelargerin1928thantheyarein1910?Why?2. (1½points)Supposetwostatesarealikeinallregards,exceptonestate’spopulationis10%Catholicandtheotherstate’spopulationis50%Catholic.a. Whatwillbethepredicteddifferenceintheirhighschoolgraduationratesin1910?In1928?b. Whentheauthorsuse“%populationCatholic”,are theyreallytryingtomeasuredifferencebasedonreligion,ordotheythinkreligionproxiesforsomethingelse?3.
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