Exam (elaborations)
ECS4863 Assignment 3 Semester 2 2023
- Course
- ECS4863
- Institution
- University Of South Africa
ECS4863 Assignment 3 Semester % TRUSTED workings, explanations and solutions. For assistance call or us on .
[Show more]
Content preview
ECS4863ASSIGNMENT 3 SEMESTER 2 2023
, ASSIGNMENT 03
DUE DATE: 18 August 2023
UNIQUE NUMBER: 723336
This assignment deals with the following assessment criteria:
- Lesson 3 (Panel data methods)
Question 1: (9 marks)
1.1 In your own words, explain the reasons why a researcher will want to use panel data.
Also provide some real-life examples where panel data is used in South Africa. (2)
1.2 Explain the reasons for preferring random effects over pooled OLS. (3)
1.3 In your own words, explain how you will determine which is the better model between
pooled OLS and least square dummy variable. (4)
Question 2: (21 marks)
In this question you need to analyse the annual unemployment rate (U) and annual wage
(W) data for three economies namely Delta, Alpha and Theta. The wages are paid in Rands.
A basic theoretic specification for wages can be written as follows:
𝑈𝑖𝑡 = 𝛽0 + 𝛽1 𝑊𝑖𝑡 + 𝑒𝑖𝑡 (1)
Where:
U: annual unemployment rate
W: annual weekly wage
The data is available in the Excel sheet: ECS4863 2023 Assignment 03 Q2_data. Please note,
that when submitting your results, you should define the variables that you have created.
Where applicable, you can copy and paste your EViews output onto your answer sheet.
2.1 What is your a-priori expected relationship between wages and employment? Make
sure to provide a reference/source for your answer. (2)
2.2 Estimate the model (1) using pooled OLS and interpret the results. Are there any
Random effects in the model? (3)
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LIBRARYpro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R48,44. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now