Empirical Research Methods- Economics

Empirical Research Methods- Economics

Empirical Research Methods

Assignment 2

Due April 19

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Question 1 (15 points)

a. Why is the IIA property of the multinomial logit model an advantage and a disadvantage?

b. Provide a brief (i.e. no equations) explanation of the Hausman-McFadden test.

Question 2 (20 points)