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Question:

[Solution] Econometrics

by | Jul 18, 2022 | Recent Orders

Please use the attached 3 files to complete the assignment. I need to submit the syntax file and output file for SPSS software.

In the Guns dataset uploaded with this HW, there is data for 50 US states and the District of Columbia for twenty years from 1979-1999.

1. Estimate a regression of ln(vio) against shall, incarc_rate, density, avginc, pop, pb1064, pw1064 and pm1029. Use HC1 standard errors. The regression model should have an intercept.

2. Add in state fixed effects to the regression in Q1. Use HC1. Do not include an intercept in this regression.

3. Add in time fixed effects to the regression in Q1. Use HC1. Do not include an intercept in this regression.

4. Add in both state and time fixed effects to the regression in Q1. Use HC1. Do not include an intercept in this regression.

5. Examine the results from the 4 models you’ve estimated. Comment specifically on the coefficient on shall. Does the magnitude or sign or significance of the variable change as you add in state, time or both state and time fixed effects? You can use a 5% level of significance to compare, if needed.

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