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Summer 2021 Exam
EC220
Introduction to Econometrics
Suitable for all candidates
Instructions to candidates
This paper contains FOUR questions, divided into two sections. Section A contains ONE question
related to Michaelmas Term and Section B contains THREE questions related to Lent Term. You
should answer ALL questions from Section A and ALL questions from Section B.
If at any point in this exam you feel that anything is unclear, please make additional assumptions that
you feel are necessary and state them clearly.
For Section A: Please type your answer in a Word-processing software on a computer (e.g. Word).
You could combine the typed document with scanned or photographed hand-drawn diagrams and
computations. The maximumword count is 1500 words, beyond which nothing will be marked. There
is no minimum word count and concise answers will be rewarded.
For Section B: Please use pen and paper and scan (or photograph) your answers. You could also use
an iPad or a tablet. There is no maximum word count for Section B. Please annotate your answers
clearly.
The answers must then be converted to pdf and uploaded to Moodle as ONE individual file together
with the Coversheet. Please make sure every single scanned page is legible and properly ordered.
The file will be run through Turnitin to ensure academic integrity.
Time Allowed Submit PDF with answers within 24 hours after official start of the exam
Expected effort Reading Time: 15 minutes
Answering Time: 3 hours
You are supplied with: Lindley & Scott Cambridge Statistical Tables
Table A5 Durbin-Watson d-statistic
You may also use: Open book examination
Calculators: Calculators are allowed in this exam
LSE ST 2021/EC220 Page 1 of 7
Section A
(Answer all questions.)
Question 1
[33.34 marks]
A blowout of the BPDeepwater Horizon oil-well in April 2010 led to the largestmarine oil spill in history,
lasting until July of that year. Researchers would like to analyse whether consumers reacted to the
disaster by reducing their consumption of BP branded petrol during the oil spill. They collected data
on the prices and quantities sold at BP-branded and non-BP petrol stations across zip codes (postal
codes; small local areas) in the US. Either a zip code contains BP stations, in which case the average
price and average number of gallons sold for each of these BP stations is recorded (and the indicator
variableBP = 1), or a zip code contains no BP station, in which case the price and quantity at these
non-BP stations is recorded (and BP = 0). An observation is a particular petrol station. Non-BP
stations in BP zip codes are not used in the sample.
Prices and quantities are the averages either for the period January 2009 to March 2010 (before the
oil spill) in columns (1) and (2) or for April 2010 to July 2010 (during the oil spill) in columns (3) to (6)
of the table below. Prices are in US Dollars per gallon and coded as Price. Quantities are in logarithm
and coded as ln(sales). The researchers also constructed a variable called Green Index, which is
supposed to measure the environmental orientation of consumers in the zip code. TheGreen Index
is constructed by combining the share of hybrid vehicle registrations, per capita membership in the
Sierra Club, an environmental organisation, and per capita contributions to Green Party election funds
in the zip code, all measured prior to 2010. The Green index is then standardised to have mean 0
and standard deviation 1. Using either Price or ln(sales) as the dependent variable, the researchers
obtain the following results.
Jan 2009 - Mar 2010 Apr 2010 - Jul 2010

辅导EC220程序设计、讲解Java，CSS,Python编程语言 解析Haskell程序|讲解R语

辅导EC220程序设计、讲解Java，CSS,Python编程语言解析Haskell程序|讲解R语