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ECONOMICS Assignment




Question;1. Consider the paper by;Banerjee and Duo, \The Economics Lives of the Poor." To answer;the following questions;look at the tables presented there and keep in mind that by \poor;I mean \living below;1.08 dollars per day.;(a) Of the countries;surveyed by the two researchers, which one has thehighestnumber;of poor people? (Enter;name of country in question 1) Which one has thelowest?;(Enter name of country;in question 2);(b) Compare the rural;and urban poor in Pakistan in regards to;food expenditures;asset ownership;use of toilet and electricity;Given that both groups;have similar earnings levels, why do you think they are different along those;lines (i.e., food expenditures, asset ownership, toilet and electricity)?;(Under question 3, check;all answers that apply.);(c) Which country would;you judge to have theworstbasic infrastructure for its urban;poor? (Enter name of;country under question 4) Thebest? (Enter name under;question 5).;(d) In general, do you;think that the urban poor are more or less likely to have multiple;jobs than the rural;poor? (Enter answer in question 6);(e) In most countries;the percentage of poor children in school declines for those aged;13-18, relative to those;aged 7-12.;i. Why do you think that;is the case? Enter all answers that are true under question;7.;ii. What are the;exceptions you can find that do not meet this pattern? Enter the;name of one country for;girls under question 8 and for boys under question 9.;2. We now are going to;get some practice with regression analysis. Olken (2009) has studied;the economics of;bribe-giving among indonesian truck drivers going through a specific;route, by having;enumerators collecting information on those bribes over a number of trips.;Specifically;enumerators recorded how much money the truck driver gave to a police every;time that there was a;police checkpoint along the road to Meulaboh in northern Sumatra.;Note that in the road;under consideration, there are many checkpoints, and each is manned;by police units that are;independent from one another.;(a) Consider table 2.;Under question 10, _ll the blanks to give the true;meaning of the coefficients;in column 1, panel A.;(Note: both dependent and independent variables are;measured in logs, the;coefficient, then, should be interpreted as an elasticity).;Under question 11, fill the blanks to give the true;meaning of the coefficients in;column 1, panel B.;Could you think of an intuitive explanation for this;result? Briefly enter your;explanation under;question 12.;(b) Consider next table;4. \log payment" means the log of the bribe given, \negotiate;dummy" is equal to;1 if the police at the check point tries to negotiate a higher bribe;than the one being offered;\gun visible" is a dummy equal to 1 if the police has a;visible machine gun.;Explain the coefficients in column 1 by filling the;blanks in question 13.;What does this regression tells us about bargaining over;bribes? Enter a brief;explanation under;question 14.;(c) Consider column 2;and 4: why do you think the author included as control \Gun visible at;subsequent checkpoints" and \Number of officers visible at subsequent;check-;points?". Enter;your explanation under question 15.;(d) The figure below;shows the amount of bribe paid as the truck moves from origin to;destination.;What kind of trend is evident? Fill the blanks in;question 16.;Can you think of a reason for this pattern? Enter a brief;explanation under;question 17.


Paper#57194 | Written in 18-Jul-2015

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