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pset4S07v2

# pset4S07v2 - Data Analysis and Econometrics II Economics...

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Data Analysis and Econometrics II Economics 166b Spring 2007 Prof. Joseph G. Altonji Problem Set 4 Due Date: Tuesday, March 27, in class . Problem 1. In this problem you will study race differences in home ownership rates. Re-read my lecture notes on regression decompositions. The data file wealth_cv6.dta on the classesv2 server contains the data on white couples and black couples used in Altonji, Doraszelski, and Segal. Not all of the variables are included, but many key ones are. There are some other minor differences in the data. The file is over 1 megabyte. Depending on how Stata is configured on the machine you are using, you may need to increase the amount of memory available in Stata before using the file. You can do this by first opening Stata and then issuing the command set mem 30m Then open the file from within Stata by going to file and then choosing open . The variables in the file are fcwt_c6 hrinc2 hrearn hpinc2 hpearn iv68 yr inc2 hearn hrace heducat hself famcwt noeast midw > st south west hcage kids deps hsick heduca1 heduca2 heduca3 heduca4 heduca5 heduca6 wlth1 wlth2 rt > wlth2 lnwlth2 trim_c4 trim_c6 hplninc2 ownhome hage nokids nodeps rthome2 rtbusi2 rtstoc2 The variables and their labels appear below. obs: 10,209 vars: 41 size: 969,855 (99.1% of memory free) ------------------------------------------------------------------------------- storage display value variable name type format label variable label ------------------------------------------------------------------------------- fcwt_c6 float %9.0g family core weight (trimmed sample) hrinc2 float %9.0g restr. perm. income 2 hrearn float %9.0g restr. perm. earnings hplninc2 float %9.0g permanent log-income 2 hpinc2 float %9.0g permanent income 2 hpearn float %9.0g permanent earnings iv68 int %8.0g interview number=v30001 yr int %8.0g year inc2 float %9.0g total taxable non-asset income hearn float %9.0g

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