The data in CENSUS2000 is a random sample of individuals

The data in CENSUS2000 is a random sample of individuals from the United States. Here we are interested in estimating a simple regression model relating the log of weekly income, lweekinc, to schooling, educ. There are 29,501 observations. Associated with each individual is a state identifier (state) for the 50 states plus the District of […]

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The data set HAPPINESS contains independently pooled cross sections for

The data set HAPPINESS contains independently pooled cross sections for the even years from 1994 through 2006, obtained from the General Social Survey. The dependent variable for this problem is a measure of “happiness,” vhappy, which is a binary variable equal to one if the person reports being “very happy” (as opposed to just “pretty […]

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Using the “cluster” option in the econometrics package Stata® 11,

Using the “cluster” option in the econometrics package Stata® 11, the fully robust standard errors for the pooled OLS estimates in Table 14.2—that is, robust to serial correlation and heteroskedasticity in the composite errors, (i) How do these standard errors generally compare with the nonrobust ones, and why? (ii) How do the robust standard errors […]

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The data set DRIVING includes state-level panel data (for the

The data set DRIVING includes state-level panel data (for the 48 continental U.S. states) from 1980 through 2004, for a total of 25 years. Various driving laws are indicated in the data set, including the alcohol level at which drivers are considered legally intoxicated. There are also indicators for “per se” laws—where licenses can be […]

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Use the data in COUNTYMURDERS to answer this question. The

Use the data in COUNTYMURDERS to answer this question. The data set covers murders and executions (capital punishment) for 2,197 counties in the United States. See also Computer Exercise C16 in Chapter 13. (i) Consider the model where θt represents a different intercept for each time period, αi is the county fixed effect, and uit is […]

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Use the data in WAGEPAN.DTA to answer the following questions. (i)

Use the data in WAGEPAN.DTA to answer the following questions.  (i) Using lwage as the dependent variable, estimate a model that only contains an intercept and the year dummies d81 through d87. Use pooled OLS, RE, FE, and FD (where in the latter case you difference the year dummies, along with lwage, and omit an […]

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Use the data set in AIRFARE to answer this question.

Use the data set in AIRFARE to answer this question. The estimates can be compared with those in Computer Exercise 10, in this Chapter. (i) Compute the time averages of the variable concen; call these concenbar. How many different time averages can there be? Report the smallest and the largest. (ii) Estimate the equation (iii) […]

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Use the data in SCHOOL93_98 to answer the following questions.

Use the data in SCHOOL93_98 to answer the following questions. Use the command xtset schid year to set the cross section and time dimensions. (i) How many schools are there. Does each school have a record for each of the six years? Verify that lavgrexpp is missing for all schools in 1993. (ii) Create a […]

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The data set in VOUCHER, which is a subset of

The data set in VOUCHER, which is a subset of the data used in Rouse (1998), can be used to estimate the effect of school choice on academic achievement. Attendance at a choice school was paid for by a voucher, which was determined by a lottery among those who applied. The data subset was chosen […]

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Use the data in CATHOLIC to answer this question. The

Use the data in CATHOLIC to answer this question. The model of interest is where cathhs is a binary indicator for whether a student attends a Catholic high school. (i) How many students are in the sample? What percentage of these students attend a Catholic high school? (ii) Estimate the above equation by OLS. What […]

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