The specific factors model and the Heckscher- Ohlin model are both suitable to analyze winners and losers from trade. b1) What is the main difference between both models with respect to the time horizon? b2) What is the main difference between both models with respect to the factor mobility?
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- i. List all the endogenous and exogeneous variables in the model.What is the difference between Pareto efficiency and Hicks-Kaldor efficiency, and why is it relevant to benefit cost analysis?Suppose that you are interested in estimating the causal effect of X on Y; however, you are worried that your right-hand-side variable X is endogenously determined with your outcome variable Y. Further suppose that you have another variable Z that has the potential to be a good instrumental variable for X. Which of the following statements best describes how an instrument Z can be used to identify the causal effect of Xon Y? The instrument Z can serve as a proxy for the omitted variable that is causing the endogeneity problem. The instrument Z isolates the exogenous variation in X from the endogenous variation in X. O The instrument Z cannot be used to identify the casual effect of X on Y because there is no solution to the endogeneity problem. The instrument Z can act as an additional right-hand-side variable and control for the endogeneity problem.
- You and your research partner want to use Instrumental Variable analysis to write an econometrics paper and find causal estimates. Your partner argues that because the residuals and the instrument are uncorrelated, the exogeneity requirement is satisfied. What do you tell your research partner: a) You agree, the exogeneity requirement is satisfied by construction b) You agree, the exogeneity requirement is satisfied by their demonstration c) You disagree, you would need the results of the White Test to make this conclusion d) You disagree, the exogeneity requirement cannot be tested as we do not observe the error terms e) You cannot make any conclusions with the current informationIf in the study results obtained a demand and supply model for ties and suits: Demand for tie: Qdt = 410 – 5Pt – 2Ps Supply of tie: Qst = – 60 + 3Pt Demand for suit: Qds= 295 – Pt – 3Ps Supply of suit: Qss=–120 + 2Ps Based on the estimation results, then: a. Determine the general equilibrium price of a tie and suit b. What is the type of relationship between a tie and a suit? Explain your argumentA(n) variable is calculated from within the model. A(n). endogenous; endogenous endogenous; exogenous exogenous; endogenous exogenous; exogenous none of the above variable can never be taken as given.
- From a certain place K, 2000 people set off for work in the distant place S in the morning by car. Each of the drivers must decide whether to come to place S via point G or via point D (see the directed graph below). The travel time on segments G-S and K-D is not dependent on the number of drivers: each driver traverses the G-S segment in 60 minutes, and the K-D segment in 45 minutes, regardless of the number of drivers. However, the travel time on segments K-G and D-S depends on the number of drivers: if x drivers travel on the K-G segment, each driver on this segment consumes 0.005x minutes; if x drivers travel on the D-S segment, each driver on this segment consumes 0.01x minutes (see the directed graph below). Assume that all people start simultaneously and do not know the decisions of other people. Find all pure Nash equilibria of the game.Explain how the residuals of an ARMA model can be used to diagnose potential model mis-specification issues? If any, how can these misspecification issues, be addressed?(a) Rank the three economic variables from most important to least important.Provide one relevant reason to justify your selection for each of the threepositions.
- The difTerence(s) between the basic EOQ model and the production order quantity model is( are) that:a) the production order quantity model does not require the assumption of known, constant demand.b) the EOQ model does not require the assumption of negligible lead time.c) the production order quantity model does not require the assumption of instantaneous delivery.d) all of the above.On many issues, the United Nations General Assembly (UNGA) decides matters through simple majority vote. Suppose the UNGA is voting on the amount of aid to send to a country following a natural disaster (e.g., the 2004 Indian Ocean tsunami; the 2010 Haiti earthquake). This amount can be plotted along a single dimension, which, for simplicity, we will allow to range between 0 and 1: For simplicity, assume there are only seven countries in the UNGA: A, B, C, D, E, F, and G. Each country has an ideal point, indicated in the parentheses below each country’s letter (i.e., A’s ideal point is at .05, E’s ideal point is at .75, etc.). Assume the countries have single-peaked preferences (i.e., countries want policy to be as close as possible to their ideal points) and that the voting rule is simple majority (i.e., each country gets one vote, and the policy supported by a majority wins). QUESTION: 1. According to the Median Voter Theorem, whose policy position will win (when all…Children who were breastfed as infants have higher average IQs on average than children who were not. Breastfeeding advocates claim that this is due to the superior nutrition in breastmilk including brain building chemicals such as DHA. You have been hired to investigate this relationship more fully. Your employers are worried about the possibility of omitted variables biasing the results of the study. Name 3 possible omitted variables and explain how they might bias the results. Explain 2 empirical strategies you might use in your investigation.