Other
Financial Econometrics Assignment
- Course
- Institution
Its an assignment for Financial Econometrics. It features questions on endogeneity and credit card rates.
[Show more]
Seller
Follow
princeyork
Content preview
ECON 4140- Group Assignment 1Total Mark: 10 marks
Submission file(s): - Team_Contract.docx
- WS01.docx
Please work in groups to complete this lab. This workshop is worth 10% of the total course
grade. Please submit the submission file(s) in the printed paper version at the starting of July 4th
Class time. Only one person must submit for the group.
Part I: The Team Contract
1- In this course, you will be doing lots of group work. To make sure this will be a good
experience for all, let’s work on preparing a team contract. This contract must contain
“Team Procedures,” “Team Expectations,” and “Consequences.” See the following links for
samples and ideas (examples only- your contract does not have to be the same):
- Guidelines for writing team contracts- University of Arizona:
http://math.arizona.edu/~kerimar/Team%20Contract.doc
- Team Contract- MIT:
- http://web.mit.edu/6.005/www/fa15/projects/abcplayer/team-
contract/#team_contract
Submit a signed copy of the contract as Team_Contract.docx.(add your names at the end of
the document) as long as there is actual agreement.
ECON4140 - Workshop 1 Page 1 of 5
, Part II: Endogeneity
An August 2018 NBER Working Paper, “Hazed and Confused: The Effect of Air Pollution on
Dementia” (https://www.nber.org/papers/w24970.pdf), examines how cumulative long‐term
exposure to air pollution – concentration of particulate matter (PM2.5) – affects the chance of
being diagnosed with Alzheimer’s disease and related dementias later in life. Alzheimer’s leads
to continued deterioration of memory and thinking skills. While the biggest risk factor is age,
other risk factors include things people can work to change or manage, such as “diabetes, high
blood pressure, obesity, smoking, depression, cognitive inactivity or low education, and physical
inactivity.” On page 2 of the NBER Working Paper, the authors state: “Like the prior
observational studies, we observe strong, positive relationships between the prevalence of
dementia and the average concentration of PM2.5 over a decade.” Among 75-year-olds, the
correlation coefficient between dementia rates and PM2.5 exposure is 0.66. In other words,
people who have spent time living in places with high levels of air pollution are more likely to
suffer from dementia later in life.
Questions:
(a) What is the authors’ research question?
(b) For answering the authors’ research question, how would we imagine the gathering of exper
imental data, even if it is not realistic in this case?
(c) What does it mean to say that pollution exposure is endogenous? Explain. How does this aff
ect the assessment of the reported coefficient of correlation (0.66)? Answer within
4 sentences.
ECON4140 - Workshop 1 Page 2 of 5
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller princeyork. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now