Apply Mallows’s procedure to construct augmented component-plus-residual plots for the SLID regression of log wages on sex, age, and education. *Then apply Cook’s CERES procedure to this regression....


Apply Mallows’s procedure to construct augmented component-plus-residual plots for the SLID regression of log wages on sex, age, and education. *Then apply Cook’s CERES procedure to this regression. Compare the results of these two procedures with each other and with the ordinary component-plus-residual plots in Figure 12.6. Do the more complex procedures give clearer indications of nonlinearity in this case?



May 05, 2022
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