ECN224 Econometrics 1 - 2020Past Paper Questions and Answers

FOR MORE HIGH-QUALITY PAST PAPER MODEL ANSWERS, ONLINE TUTORING AND
ECONOMICS HELP, visit LondonEconomicsTutors.co.uk.
Discounted prices compared to all other websites

ECN224 Econometrics 1 – 2020
Questions and Answers

, FOR MORE HIGH-QUALITY PAST PAPER MODEL ANSWERS, ONLINE TUTORING AND
ECONOMICS HELP, visit LondonEconomicsTutors.co.uk.
Discounted prices compared to all other websites




(a)

Less_sec and libdem are not included among the regressors because doing so would introduce
perfect multicollinearity. This is because less_sec is equal to 1 – degree – secondary, and libdem is
equal to 1 – labour – tory.




(b) The coefficient on tory and labour represent the effect that being most closely affiliated with the
Conservative party and the Labour party have on the number of hours worked, relative to those who
are most closely affiliated with the Liberal Democrat party.