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Unformatted text preview: AREC 345: Global Poverty and Economic Development Problem Set 1 Department of Agricultural and Resource Economics Washington University in St. Louis Fall 2011 Problem Set 1 is due at the start of class on September 21. Problem sets must be handed in to TA Shirley Pon as hard copies. Those received after 11:05 AM on September 21th will be marked as one day late. This problem set uses the data set arec345ps1data.csv . The data are from Nathan Nunns (2008) paper, The Long Term Effects of Africas Slave Trades. The data set is also available on his web site, though in a different format. The data set includes information about 47 countries in Sub-Saharan Africa, including small island nations. Several of the questions ask you to run a series of linear (OLS) regressions using the LINEST command in Excel. The LINEST command estimates the best linear fit for a given data set, allowing us to explore the relationships between the independent and dependent variables. To run the LINEST command, start with an Excel worksheet in which your dependent variable is in the first column and your independent variables are just to the right of the dependent variable. For example, if you wanted to estimate the linear regression equation y = a + b 1 x 1 + b 2 x 2 + e to explore the relationship between independent variables x 1 and x 2 and dependent variable y , youd have the variable y in Column A, x 1 in Column B, and x 2 in Column C. The data set were using contains 47 observations, so the dependent variable, for example, is contained in cells A2:A48 . In this example, you are estimating three parameters:....
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- Fall '11