empir_ex10[1] - Chapter 10 Regression with Panel Data ย...

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Unformatted text preview: Chapter 10 Regression with Panel Data ยก Solutions to Empirical Exercises 1. (1) (2) (3) (4) shall โˆ’ 0.443 ** (0.048) โˆ’ 0.368** (0.035) โˆ’ 0.0461 * (0.019) โˆ’ 0.0280 (0.017) incar_rate 0.00161 ** (0.00018) โˆ’ 0.00007 (0.00009) 0.0000760 (0.000090) density 0.0267 (0.014) โˆ’ 0.172 ** (0.085) โˆ’ 0.0916 (0.076) avginc 0.00121 (0.0073) โˆ’ 0.00920 (0.0059) 0.000959 (0.0064) pop 0.0427 ** (0.0031) 0.0115 (0.0087) โˆ’ 0.00475 (0.0079) pb1064 0.0809 ** (0.020) 0.104 ** (0.018) 0.0292 (0.023) pw1064 0.0312 ** (0.0097) 0.0409 ** (0.0051) 0.00925 (0.0079) pm1029 0.00887 (0.012) โˆ’ 0.0503 ** (0.0064) 0.0733 ** (0.016) Intercept 6.135 ** (0.019) 2.982 ** (0.61) 3.866 ** (0.38) 3.766 ** (0.47) State Effects No No Yes Yes Time Effects No No No Yes F-Statistics and p- values testing exclusion of groups of variables State Effects 210.38 (0.00) 309.29 (0.00) Time Effects 13.90 (0.00) 2 R 0.09 0.56 0.94 0.95 (a) (i) The coefficient is โˆ’ 0.368, which suggests that shall-issue laws reduce violent crime by 36%. This is a large effect. (ii) The coefficient in (1) is โˆ’ 0.443; in (2) it is โˆ’ 0.369. Both are highly statistically significant. Adding the control variables results in a small drop in the coefficient. Solutions to Empirical Exercises in Chapter 10 141 (iii) Attitudes towards guns and crime. Quality of schools. Quality of police and other crime- prevention programs. (b) In (3) the coefficient on shall falls to โˆ’ 0.046, a large reduction in the coefficient from (2)....
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This note was uploaded on 11/06/2009 for the course ECON ECON111 taught by Professor Smith during the Spring '09 term at Punjab Engineering College.

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empir_ex10[1] - Chapter 10 Regression with Panel Data ย...

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