Homework 1 - precision. Third, Lott uses arrest rates (the...

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ECO 7427 Econometric Methods Instructor: Dr Hamersma Homework Number One Student: Carlos Pitta Problem 1 Basics: The basic idea behind the Lott (1997) paper is that allowing adults to carry concealed weapons reduces crime rates. There are also some disadvantages to using county data. First, the intervention of interest is generally a statewide phenomenon. 67 Using county data under these circumstances will likely exaggerate the amount of independent data available to the researcher, thereby possibly creating the appearance of statistical significance when in fact none exists. 68 Second, many of the explanatory variables are only measured on the state level and thus again the county data analysis may be giving a false sense of
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Unformatted text preview: precision. Third, Lott uses arrest rates (the ratio of arrests to crime in a county) as an explanatory variable, which leads to many counties being dropped from the analysis. This occurs because of missing arrest data in some cases, and also because the arrest rate is undefined for any county that experiences no crime in a particular category in a Problem 2 Problem 3 Crime, Deterrence, and Right-to-Carry Concealed Handguns John R. Lott, Jr.; David B. Mustard The Journal of Legal Studies , Vol. 26, No. 1. (Jan., 1997), pp. 1-68. page 1 of 1...
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This note was uploaded on 01/10/2011 for the course ECON 7427 taught by Professor Hamersma during the Spring '06 term at University of Florida.

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