Economic Change and Ideas

The following post has three assignments namely;

1.Economic Change and Ideas

How does Neo-liberalism amalgamate insights from Adam Smith, neoclassical economics, Austrian economics, Soviet type socialism, Milton Friedman and the new classical supply siders in its own body of thought?

2. A FINE ARTS PROJECT ANALYSIS

You have been asked by a private bank to provide a due-diligence report on an individual art work which they are considering accepting as collateral for a 5 year-fixed bullet loan. Pick a fine art object of your choice (must have a market value above $100,000) and carry out the following due-diligence research:

3. Introductory Econometrics

Q1. Estimate the parameter of the econometric model in equation (1) using STATA. What is the estimated effect of experience on wages? Q2. What can we say about the effect of an increase of one point in the looks scale on wages? Is this larger or smaller than the effect of an additional year of experience for an individual with 5 years of experience? Is the difference statistically significant? Q3. Is there any evidence of functional form misspecification for equation (1)? Q4. How would you test the hypothesis that beauty has the same effect on wages both for males and females? Provide a p-value for such test. Q5. Is there any evidence of heteroskedasticity in equation (1)? Provide an heteroskedasticity robust estimate of the parameters in equation (1). Problem Set 2 The file approval.dta contains information on 78 months of data during the presidency of George W. Bush spanning the period between February 2001 and July 2007. In particular we have information on the approval rate for George W. Bush (approve), the logarithm of consumer price index for food (lcpifood), the logarithm of the gas price (lrgasprice) as well as several event dummies for the 9/11 terrorist attack (sep11 - equal to one for September 2001 and zero otherwise), Iraq invasion (iraqinvade - equal to one from March 2003 to June 2003 and zero otherwise) and hurricane Katrina (katrina - equal to one for September 2005 and zero otherwise). Consider the following econometric model: approvet = a0 + a1lcpifoodt + a2lrgaspricet + ut (2) 1 Q6. Using STATA obtain the OLS estimates for a1 and a2 and interpret the estimated coef- ficients. Are they statistically significant? Do they have the sign you expected? Q7. Explain why it would be safe to include a trend in the analysis. Consider both a linear and a quadratic trend: which one provides a better fit to the data? (hint: the variable t takes value 1 for the first observation and 78 for the last one) Q8. Is there any evidence of the seasonality?