5.The most common justification provided for the tax subsidy to homeownership in the US is thathomeownership has positive externalities that renting does not. As Glaeser and Shapiro (2002)write: "To its supporters, the home mortgage interest deduction is the cornerstone of Americansociety. Homeownership gives people a stake in society and induces them to care about theirneighborhoods and towns. By subsidizing property ownership, the deduction induces people toinvest and then to have a stake in our democracy. Ownership makes people vote for long-runinvestments instead of short-run transfers."Consider the following regression model:Мeetingsi 3D Bo + Bi x Нотеower + uMeetings is the number of town hall meetings the individual attended in the last year andHomeowner equals 1 if the individual is a homeowner. A researcher who collects data andregresses Meetings against Homeowner finds that B, > 0.The OLS estimator, B, however, likely suffers from omitted variable bias because the set ofpeople who buy homes are likely to be the types of persons who would be more inclined tomake social connections, participate in the political process, and take care of their propertieseven if they were renting. Because of this omitted variable bias, it is likely the case thatB1.A)В)

Given information: The regression model is given.

Answered: The most common justification provided…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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3. The annual rate of the return for ACH Corporation common stock has been: 2000 -10% 1998 1999 Return 14% 15% What's the geometric mean of the rate of return for the common stock over the four years? A). B). C). E). 8.62 7.69 10.22 7.46 6.64 2001 14% 4. The average household income in the City of Santa Rosa (CA) is reported to be $75,000 per year, but the city finance manager believes that the average income is much higher due to the recent relocations of several high-tech firms to the city from the Silicon Valley. The city then commissioned a study using 2,000 residents and found that the average income is $85,000 with a o = $10,000. Let a = 1%. H₂: Mean = μ $75,000 What's the critical Z-value for this test? A). - 1.645 B). + 1.96 C). + 1.645 D). - 1.96 E). + 2.32
1) The question screenshot has been attached down below answer question 15 a,b step-by-step.
Part of the agreement between your spouse and yourself for purchasing a larger house than you could currently afford was that you would build a garden and sell produce to make some extra money. Your plan is that the garden proceeds will cover 20% of your $1,500 mortgage payment for four months during the year. The Homeowner association has recently reinforced that ‘food-production’ space must be in the backyard and may not consume more that 20% of the backyard. If your backyard is 60’ x 130’, how many dollars per garden square foot will you need to average per production month in order to meet your planned mortgage reduction?
In a telephone survey of 1000 adults, respondents were asked about the expenses on a management education and relative necessity of some form of financial assistance. The respondents were classified according to whether they currently had a child studying in a school of management and whether they thought that the loan burden for most management students is too high, right amount, or too little. The proportions responding in each category are given below: Too High(A) Right Amount(B) Too Little(C) Child Studying 0.35 0.08 0.01management (D)No Child Studying 0.25 0.20 0.11Management (E) Suppose one respondent is chosen at random from this group. Then (i) What is the probability that the respondent has a child studying management?(ii) Given that the respondent has a child studying management, what is the probability that he/she ranks the loan burden “too…
3. Lia’s marginal tax rate is 25% and she itemizes her tax deductions. a. How much is a $500 deduction worth to her? b. How much is a $500 tax credit worth to her? c. Suppose we want to subsidize higher education purchases for low to middle income families. Comment on whether a deduction or credit against the income tax would be more appropriate
Don and Bob own a small business as equal partners. They entered into a cross-purchase buy-sell agreement several years ago and funded the agreement with life insurance. Don has now died, and the personal representative of his estate has demanded that Bob honor the agreement by purchasing Don's half interest in the partnership for the price stated in the agreement. Which one of the following statements about the income, gift, or estate tax implications of this business planning technique is correct? A) If Bob purchases the life insurance policy on his life from Don’s estate at its replacement cost, a portion of the death benefits from this policy (when Bob dies) will be taxable income to the recipient. B) If the price established in the agreement for Don’s interest does not undervalue the interest, no gift tax will be due from this transaction. C) The death benefits received by Bob from the life insurance policy on Don will be taxable income to Bob since a transfer for…
What are two points of criticism of Milton Friedman's approach to corporate responsibility? Explain each point in depth.
Consider the following situation, which involves two options. Determine which option is less expensive. Are there unstated factors that might affect your decision? You currently drive 400 miles per week in a car that gets 14 miles per gallon of gas. You are considering buying a new fuel-efficient car for $16,000 (after trade-in on your current car) that gets 42 miles per gallon. Insurance premiums for the new and old car are $900 and $500 per year, respectively. You anticipate spending $1700 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less expensive to keep your old car or buy the new car? Over a five-year period, the cost of the old car is $ (Round to the nearest dollar as needed.) and the cost of the new car is $ Thus, over a five-year period, it is less expensive to
The chief loan officer of La Crosse Home Mortgage Company summarized the housing loans extended by the company in 2017 according to type and term of the loan. Her list shows that 70% of the loans were fixed-rate mortgages (F), 20% were adjustable-rate mortgages (A), and 10% belong to some other category (0) (mostly second trust-deed loans and home equity loans). Of the fixed-rate mortgages, 80% were 30-year loans and 20% were 15-year loans; of the adjustable-rate mortgages, 30% were 30-year loans and 70% were 15-year loans; finally, of the other loans extended, 30% were 20-year loans, 60% were 10-year loans, and 10% were for a term of 5 years or less. (a) Draw a tree diagram representing these data. 20 s 5 10 <=5 15 30 30 30 20 ca5 15 (b) What is the probability that a home loan extended by La Crosse has an adjustable rate and is for a term of 15 years? (c) What is the probability that a home loan extended by La Crosse is for a term of 15 years?
You may need to use the appropriate appendix table or technology to answer this question. Individuals filing federal income tax returns prior to March 31 received an average refund of $1,059. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). (a) A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of H0 will support the researcher's contention. A) H0: ?= $1,059 Ha: ? ≠ $1,059 B) H0: ?< $1,059 Ha: ?≥ $1,059 C) H0: ? ≥ $1,059 Ha: ? < $1,059 D) H0: ?> $1,059 Ha: ? ≤ $1,059 E) H0: ?≤ $1,059 Ha: ? > $1,059 (b) For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience, a population standard deviation of ? = $1,600may be…
A6

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