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

This preview shows pages 1–2. Sign up to view the full content.

* 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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

### Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online