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ENVECON 118 / IAS 118
Elisabeth Sadoulet
University of California at Berkeley
Fall 2010
Introductory Applied Econometrics
Assignment 6
Note: Because of the administrative regulation, the handing in of the assignment is different from
usual procedure
Must be handed to Andrew in 313 Giannini Hall on Friday December 3 between 12:30pm and 2:30pm or
brought to class on Tuesday December 7 between 9:30 and 10 am at the review session in 141 Giannini
Hall
Exercise 1. Analysis of the demand for organic products
This data set APPLE.txt in Wooldridge is an interesting example of experimental data (it can suggest ideas
for future projects).
They are telephone survey data attempting to elicit the demand for a (fictional)
“ecologically friendly” apple.
Each family was randomly presented with a set of prices for regular apples
and ecolabeled apples.
They were asked how many pounds of each kind of apple they would buy.
The
data set includes the following variables:
2. educ
years schooling of respondent
5. regprc
price of regular apples ($/lbs)
6. ecoprc
price of ecolabeled apples ($/lbs)
8. hhsize
household size
9. male
=1 if respondent is male
10. faminc
family income, thousands $
11. ecobuy
=1 if ecolbs>0
12. reglbs
quantity regular apples, lbs
13. ecolbs
quantity ecolabeled apples, lbs
14. numlt5
# in household younger than 5
15. num5_17
# in household 5 to 17
16. num18_64
# in household 18 to 64
17. numgt64
# in household older than 64
. sum ecobuy ecolbs reglbs ecoprc regprc faminc
Variable 
Obs
Mean
Std. Dev.
Min
Max
+
ecobuy 
660
.6242424
.4846852
0
1
ecolbs 
660
1.47399
2.525781
0
42
reglbs 
660
1.282323
2.909862
0
42
ecoprc 
660
1.081515
.295573
.59
1.59
regprc 
660
.8827273
.2444687
.59
1.19
faminc 
660
53.40909
35.74122
5
250
I estimated the following four models:
I. reg ecolbs faminc regprc ecoprc hhsize
male educ
Source 
SS
df
MS
Number of obs =
660
+
F(
6,
653) =
4.59
Model 
170.213972
6
28.3689954
Prob > F
=
0.0001
Residual 
4033.92285
653
6.17752351
Rsquared
=
0.0405
+
Adj Rsquared =
0.0317
Total 
4204.13682
659
6.3795703
Root MSE
=
2.4855

ecolbs 
Coef.
Std. Err.
t
P>t
[95% Conf. Interval]
+
faminc 
.0022725
.0028706
0.79
0.429
.0033641
.0079092
regprc 
3.036471
.7147115
4.25
0.000
1.633061
4.439881
ecoprc 
2.888931
.5952459
4.85
0.000
4.057757
1.720104
hhsize 
.0537704
.0650184
0.83
0.409
.0738999
.1814408
male 
.1058233
.2242495
0.47
0.637
.5461603
.3345137
educ 
.0330106
.0451919
0.73
0.465
.0557283
.1217496
_cons 
1.191515
.8076929
1.48
0.141
.3944733
2.777504

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This note was uploaded on 02/10/2011 for the course EEP 118 taught by Professor Elizabeth during the Spring '11 term at University of California, Berkeley.
 Spring '11
 elizabeth

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