ECON 306 - Homework 2
Some parts of the following problems will require a lot of calculations in EXCEL (or Google
Spreadsheets) and STATA.
It will generate many pages of output.
Here is how your should
The first pages should contain your answers to all the questions below, along
with showing any key algebraic equations or explanations you need to use to justify your
After that, include a printout of the output from EXCEL/STATA to support of your
Highlight any numbers in this output that you used in the first section.
(To save paper,
you may print this section in a small font, double-sided and/or with 2-up format.)
Be sure you
organize these in a way that will be clear to the reader.
(40 points) The file Corruption.xls contains country-level data on two variables.
these is a measure of perceptions of political corruption.
(This data is assembled by the
organization Transparency.org.) [NOTE: I have modified the original corruption measure so
that higher values mean higher corruption.
The least corruption possible has a measure of 0,