question archive Suppose you are trying to estimate a model explaining decision to have children among Millennials (Kids=1 for those having 1 or more children and Kids=0 for those who do not have any kids) as a function of demographic and other characteristics
Suppose you are trying to estimate a model explaining decision to have children among Millennials (Kids=1 for those having 1 or more children and Kids=0 for those who do not have any kids) as a function of demographic and other characteristics
Subject:EconomicsPrice:2.86 Bought3
Suppose you are trying to estimate a model explaining decision to have children among Millennials (Kids=1 for those having 1 or more children and Kids=0 for those who do not have any kids) as a function of demographic and other characteristics. Can you think of three omitted variables - variables that MUST be in the model but are not present in the model below?
Kids_i=B0+B1*Age_i+B2*Edu_i+ε_i
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer : Three omitted variables could include?
- quality of life at present which may be represented by a proxy variable like income earned by the household
- Family support or number of members in the family. A larger family may induce a feeling to raise kids. This conjecture can be tested using the regression.
- Level of education of parents - This can also provide interesting results.
