Suppose that in a family savings equation, for the years 1990, 1991, and 1992, we let kidsit denote the number of children in family i for year t. If the number of kids is constant over this three-year period for most familiesin the sample, what problems might this cause for estimating the effect that the number of kids has on savings?
Equations and Inequations
Equations and inequalities describe the relationship between two mathematical expressions.
Linear Functions
A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.
Suppose that in a family savings equation, for the years 1990, 1991, and 1992, we let kidsit denote the number of children in family i for year t. If the number of kids is constant over this three-year period for most families
in the sample, what problems might this cause for estimating the effect that the number of kids has on savings?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
