econometrics janek 1

estimate by OLS the parameters of the model in the picture, where wage represents average hourly earnings. For significance level of 10%, test for the normal distribution of errors using the jargue-bera test.

series ln=ln(wage) ENTER series ex=exper^2 ENTER ols ln const educ exper ex trade ENTER ols ln const educ exper ex trade --vcv ENTER series ehat1=$uhat ENTER normtest ehat1 --jbera ENTER normtest ehat --all ENTER scalar cv1=critical(c, 2,0.1)

Using significance level of 5%, perform two F test: 1) to check the overall significance of the mode, 2) to verify the null hypothesis that, after controlling the educ and trade variables exper and exper^2 are jointly insignificant.

ols ln const educ exper ex trade ENTER scalar pval21=pvalue(f, 2, DFul, Ftest) scalar cv21=critical(f, 2, DFul,0.05) ENTER scalar Ftest=((SSErl-SSEul)/2)/(SSEul/DFul) ENTER ols ln const educ trade ENTER scalar DFul=$df ENTER scalar SSEul=$ess ENTER