panel - exercise A(1 a unit increase(1 point increase in...

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* exercise A * * (1) a unit increase (1% point increase) in student population increases the rent by 100*beta3% * rent in 1990 was higher by 100delta% than that in 1980 * both effects: holding other things constant * * (2) use rental, clear reg lrent lpop lavginc pctstu y90 reg lrent lpop lavginc pctstu y90, robust * beta3hat=.0050436 (.0011488) * deltahat=.2622267 (.0579584) * * (3) a city with lower crime rate or less air pollution is more likely to have high average income. h * (4) logrent1990 = beta0 + delta + beta1 logpop1990 + beta2 logavginc1990 + beta3 pctstu1990 + ai + e1990 * logrent1980 = beta0 + beta1 logpop1980 + beta2 logavginc1980 + beta3 pctstu1980 + ai + e1990 * therefore, Dlogrent = delta + beta1 Dlogpop + beta2 Dlogavginc + beta3 Dpctstu + De D * (5) reg clrent clpop clavginc cpctstu * beta3hat=.0112033 (.0041319) * deltahat=.3855214 (.0368245) * * (6) they are different. if they are different, we support the panel model as long as the estimates are significantly different from zero. * 1.12% increase
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panel - exercise A(1 a unit increase(1 point increase in...

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