Economics 240A Problem Set #7 Spring 1998 Due April 22 Turn in (correct) answers to the following exercises from Goldberger's text: "Theoretical" questions: Chapter 18: Exercise 18.1 Chapter 19: Exercise 19.3 Chapter 20: Exercises 20.1 and 20.2 Chapter 21: Exercises 21.3 and 21.4 Chapter 22: Exercises 22.2 and 22.3 "Empirical" questions: Chapter 17: Exercise 17.4, 17.5, and 17.6 Chapter 21: Exercise 21.6 Chapter 22: Exercise 22.5 Note on "empirical" questions: Goldberger suggests use of the GAUSS programming language to analyze this data set. The Econometrics Microcomputer Laboratory has a very limited number of site licenses for GAUSS; however, the EML has an unlimited site license for MATLAB, which is a matrix-based programming language and is quite similar to GAUSS. You may use either GAUSS (if you can get access) or MATLAB to do the empirical exercises; you should not use a high-level statistical package like TSP or STATA to compute your results. The point of the exercise is to connect the theoretical (matrix) constructs to a concrete application, and not just to "run regressions".