ECON 312 Final: ECON312 Final1Fall2015solution
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Instructions: this is closed book, closed notes exam, no calculators of any kind are allowed, show all the steps and calculations, if you need more space, use the back of the page, fully label all graphs. Jose wants to study the factors a ecting economic growth across countries, with particular interest in the role of government sector. He collected data on 171 countries, with the following variables: 5 year average gdp growth rate (in %) Gov(cid:146)t expenditure as % of gdp govshare2 (i. e. , govshare squared) =1 if asia and the paci(cid:133)c, 0 otherwise. =1 if middle east and north africa, 0 otherwise. =1 if south and central america and caribbean, 0 otherwise. =1 if sub-saharan africa, 0 otherwise region dummies pop. Jose(cid:146)s r command and regression output are presented below:* *jose is using the country(cid:146)s population as weight on each observation, so that country like china has more weight in the sample than singapore. (a) (5 points).
