Vassar College
Economics 210
Econometrics
Final Exam Name___________________________
Fall 2000 December 15, 2000
Answer all questions in bluebooks. Remember to put your name on the bluebook(s). Turn in the exam sheet with
your bluebook. Show your work .
1. Given the following model:
Where are current endogenous variables and are exogenous.
a) Which, if any of the coefficients are biased if OLS is used. Indicate the direction of bias.
b) Indicate whether each of these equations are unidentified, exactly identified or over-identified.
c) Indicate which of OLS, ILS, and 2SLS are appropriate to estimate each equation.
2. Given the following model
a) Which, if any of the coefficients are biased if OLS is used. Indicate the direction of bias.
b) Indicate whether each of these equations are unidentified, exactly identified or over-identified.
c) Indicate which of OLS, ILS, and 2SLS are appropriate to estimate each equation.
3. The following is a wage price model.
Estimates of the reduced form are
Find an estimate for . Can you find estimates for any other of the structural coefficients.
Why or why not.
4. The log of the likelihood function for a Reyleigh Distribution is given by the followin g:
a) Find a maximum likelihood estimator for given
b) Use a likelihood ratio test to test
