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e1.pngf1.png

src="/qa/attachment/10756184/" alt="rest.png" />

Model 4 is for question e, model 5 is for question f.

e1.png

Model 4: OLS, using observations 1-1236 (n = 1234)
Missing or incomplete observations dropped: 2
Dependent variable: PerCapitaInc
coefficient std. error t-ratio
p-value
const
37703.1
1102.07
34 . 21
7.76e-181
UnempRate2010
-1257.67
62. 2997
-20.19
1.64e-078
WhiteNonHispanic~
35 . 2862
8.63371
4.087
4.65e-05
Mean dependent var
27794 .48
S.D. dependent var
7946. 011
Sum squared resid
4.84e+10
S. E. of regression
6269.773
R-squared
0. 378415
Adjusted R-squared
0. 377406
F(2, 1231)
374. 7112
P-value(F)
7.9e-128
Log-likelihood
-12538.94
Akaike criterion
25083 .88
Schwarz criterion
25099 . 24
Hannan-Quinn
25089.66

f1.png

Model 5: OLS, using observations 1-1985
Dependent variable: PerCapitaInc
coefficient std. error t-ratio
p-value
const
24033.1
524.940
45.78
0. 0000
UnempRate2010
-642.753
27.9595
-22.99
7.27e-104
WhiteNonHispanic
79 . 8007
4. 69788
16.99
1.60e-060
Mean dependent var
24318.00
S.D. dependent var
5295.745
Sum squared resid
3.53e+10
S. E. of regression
4221.136
R-squared
0. 365303
Adjusted R-squared
0. 364662
F(2, 1982)
570.3743
P-value(F)
2. 2e-196
Log-likelihood
-19385.59
Akaike criterion
38777.19
Schwarz criterion
38793.97
Hannan-Quinn
38783.35

rest.png

(e) [1 point] Run the regression from (b) using only metro areas in 2013 (Metro2013=1). Hint: You need to
restrict the data based on a criterion before running the regression.] Now, what is the estimated effect of
FIRE share on per capita income and also indicate if the relationship is statistically significant at the 10%,
5%, and 1% levels?
(f) [1 point] Run the regression from (b) using only non-metro areas in 2013 (Metro2013==0). [Hint: You
need to restrict the data based on a criterion before running the regression.] Now, what is the estimated
effect of FIRE share on per capita income and also indicate if the relationship is statistically significant at the
10%, 5%, and 1% levels?
(g) [2 point] What did you learn from the comparison between results in parts (e) and (f)? Explain your
answer. Note that I again am asking you to think about the context (and hence the "story" behind these
data).

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