Final Exam Review Sheet - Cross Section Econometrics | ECON 8710, Exams of Economics

Download Final Exam Review Sheet - Cross Section Econometrics | ECON 8710 and more Exams Economics in PDF only on Docsity! Final Exam Cross Section Econometrics Econ 871 May 2000 You have been hired by the Department of Health and Human Services to estimate a supply equation for doctors, nurses, and psychologists and then to estimate how the supply of doctors, nurses, and psychologists affects infant mortality, alcoholism, and the need for psychiatric institutionalization. You have the following information for each county in the United States for 1995: Number of physicians Number of nurses Number of psychologists Infant mortality rate Alcoholism rate Psychiatric institutionalization rate Per capita income Per cent black Poverty rate Unemployment rate Dummy for rural Dummy for urban Number of hospitals Wage rate of unskilled workers Medicare reimbursement rate for doctors Medicaid reimbursement rate for doctors Wage rate for nurses Geographic coordinates of the center of the county Number of shopping centers Number of automobiles Population You get to hire a research assistant to collect data on any three other mea- surable variables. Choose them. Write a model of supply that allows for a reasonable correlation structure of errors across different kinds of medical professionals and geography. Ex- plain why the parameters of your model are identiÞed, let’s say, from a demand equation. Provide detail on how to estimate the parameters of your model. Write a model of how infant mortality, alcoholism, and the need for psy- chiatric institutionalization depend upon the supply of doctors, nurses, and psychologists. Make sure your model allows for interactions in the “produc- tion function” among the various inputs in a ßexible way and that it controls for other community characteristics. Also, your model should allow the infant 1