October 19, 2005

Meeting wit Mark today

Things to do
(1) plot "lev" against "iprob" as the measure of detacting troblesome observations.
(2) Test whether normality assumption is suitable for our binary choice model or not.
(3) If not, find alternative (note that "unusual" weights aggsigned to observations could happen because we use the wrong model for e of the latent regression)
(4) We do not include "lhourpay" into the structral model because there is not suitable interpretation of the coef of this variable.
(5) we do not include "lhourpay" into the probit model because we would like to use the same set of X's as in the structural model.
(6) Write a report to Mark, showing results of various regression.
(7) Trim the "iprob" using the sample size because this will not affect the asymptotic probperties of the estimator (as the treshold "N" become infinity and we effectively do not trim the weights)
(8) Try Logit instead of Probit to see whether it affects the two observations with high "iprob" or not.
(9) try to code people who study over 30 years as leaving education at 24 to work and then later come back to study. So start calculating work experience from 24 year of age.

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