ch10-1 - Chapter 10 Regression with Panel Data (Part 1)...

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Unformatted text preview: Chapter 10 Regression with Panel Data (Part 1) Traffic Deaths and Alcohol Taxes There are approximately 40,000 highway traffic fatalities each year in US. Approximately one-third of fatal crashes involve a driver who was drinking. One study estimates that as many as 25% of drivers on the road between 1AM and 3AM have been drinking. A driver who is legally drunk is at least 13 times as likely to cause a fatal crash as a driver who has not been drinking. We study how effective government policies designed to discourage drunk driving actually are in reducing traffic deaths. Panel Data The state traffic fatality data we will study are panel data . Data are for n = 48 states, where each state is observed in T = 7 time periods (1982, ..., 1988). Panel data consist of observation on the same n entities at two or more time periods T . If the data set contains observations on the variables X and Y , then the data are denoted ( X it , Y it ) , i = 1, ..., n and t = 1, ..., T , where the first subscript, i , referers to the entity being observed, and the second subscript, t , refers to the date at which it is observed. Traffic Deaths and Alcohol Taxes...
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This note was uploaded on 11/20/2011 for the course ECONOMICS 220:322 taught by Professor Otusbo during the Fall '10 term at Rutgers.

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ch10-1 - Chapter 10 Regression with Panel Data (Part 1)...

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