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Your Task Is to Model Students' Choice for Taking an Additional

question 25

Essay

Your task is to model students' choice for taking an additional economics course after the first principles course. Describe how to formulate a model based on data for a large sample of students. Outline several estimation methods and their relative advantage over other methods in tackling this problem. How would you go about interpreting the resulting output? What summary statistics should be included?


Definitions:

Single

A tax return designation for single taxpayers who are ineligible for any other filing statuses.

Understatement

The act of reporting less income or overstating deductions than actually occurred, potentially resulting in tax discrepancies.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

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