Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 8

In order to determine the effects of collegiate athletic performance on applicants, you collect data on applications for a sample of Division I colleges for 1985, 1990, and 1995.

(i) What measures of athletic success would you include in an equation? What are some of the timing issues?

(ii) What other factors might you control for in the equation?

(iii) Write an equation that allows you to estimate the effects of athletic success on the percentage change in applications. How would you estimate this equation? Why would you choose this method?

Step 1 of 4

(i)

The various measures of athletic success that would be included in the equation are:

a) Number of games played indoors and outdoors, scores , highest score across different categories of games such as football, volleyball, basketball, cricket, gymnastics over different years

b) Number of matches won across the given categories of games such as football, volleyball, basketball, cricket, gymnastics over different years

c) Number of men and women participants in different categories of games such as football, volleyball, basketball, cricket, gymnastics over different years

d) The qualifying age of the athlete in each category games such as football, volleyball, basketball, cricket, gymnastics over different years

e) The Indicator variables for some specific championship tournament won in each category games such as football, volleyball, basketball, cricket, gymnastics over different years

f) Indicator variable for male and female athlete

While preparing data across different variables in order to estimate the effects of the collegiate athletic performance on applicants need to be assessed based on the sample of Division I colleges for 1985, 1990 and 1995, the important timing issues that would arise would relate to less coincidence of such sports events being organized periodically across different games category such that for different years such events may not occur in the same month throughout.

Some tournaments related to the games may not occur regularly every year as well.