Estimate a model with votea

  1. Estimate a model with voteA as the dependent variable and prtystrA democA, log( expendA ), and log( expendB ) as independent variables. Obtain the OLS re-

siduals, ˆ , and regress these on all of the independent variables. Explain why you obtain 5 0.

  1. Now, compute the Breusch-Pagan test for heteroskedasticity. Use the Fstatistic version and report the -value.

  2. Compute the special case of the White test for heteroskedasticity, again using the

statistic form. How strong is the evidence for heteroskedasticity now?

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer