50.1K

Verified Solution

Link Copied!

QUESTION 1 In this exercise you are provided OLS estimates from two linear models of economic growth over the period 1960-1990 based on the dataset from Xavier Sala-i-Martin (1997) and 60 countries. You are asked to provide the BMA estimates based on averaging over these two models. Note: Nothing prevents you from using the data from our empirical exercise and BMA to find the answers here if you so choose. The 60 countries are those in the dataset that include the values for gamma (growth in GDPPC) and the 3 controls Sala-i-Martin included in every one of his specifications; GDPPC (1960) gdpsh60, Life expectancy (1960) lifee060, and Primary school enrollment (1960) p60. BMA estimates Posterior Posterior Mean Effect Prob Model 1 0.0438 -0.0181 0.0020 Model 2 0.0452 -0.0177 0.0017 Constant GDPPC (1960) Life Expectancy (1960) Primary school enrollment (1960) Observations BIC PMP 60 -30.75339 0.0117 60 -27.40658 Question. Calculate the PMP for model 1. Answer Format: If the PMP is 0.1050 report as 10.50. QUESTION 2 Using the information above, calculate the posterior mean for primary school enrollment. Answer format: Use 4 digits to the right of the decimal QUESTION 3 Using the information above, calculate the posterior effect probability for primary school enrollment. Format if the PEP is 0.1050 report as 10.50. QUESTION 1 In this exercise you are provided OLS estimates from two linear models of economic growth over the period 1960-1990 based on the dataset from Xavier Sala-i-Martin (1997) and 60 countries. You are asked to provide the BMA estimates based on averaging over these two models. Note: Nothing prevents you from using the data from our empirical exercise and BMA to find the answers here if you so choose. The 60 countries are those in the dataset that include the values for gamma (growth in GDPPC) and the 3 controls Sala-i-Martin included in every one of his specifications; GDPPC (1960) gdpsh60, Life expectancy (1960) lifee060, and Primary school enrollment (1960) p60. BMA estimates Posterior Posterior Mean Effect Prob Model 1 0.0438 -0.0181 0.0020 Model 2 0.0452 -0.0177 0.0017 Constant GDPPC (1960) Life Expectancy (1960) Primary school enrollment (1960) Observations BIC PMP 60 -30.75339 0.0117 60 -27.40658 Question. Calculate the PMP for model 1. Answer Format: If the PMP is 0.1050 report as 10.50. QUESTION 2 Using the information above, calculate the posterior mean for primary school enrollment. Answer format: Use 4 digits to the right of the decimal QUESTION 3 Using the information above, calculate the posterior effect probability for primary school enrollment. Format if the PEP is 0.1050 report as 10.50

Answer & Explanation Solved by verified expert

See Answer