Homework 1

ECON 4811 – Section B03

Introduction to Econometrics

Fall 2024

Please read the instructions very carefully.

1.   To complete this Homework, you will have to use the dataset “data_hw1.dta”

2.   You must use Stata.

3.   You need to generate log files. Hint : log using filename.smcl, replace starts the log. This should be the first command on your do file after you change your directory with the cd command.

log close ends and closes the log file. This should be the last command on your do file. Your log file should be in  .smcl format (which is the default format of log files).

4.   Your code must be collected in a do file. Each code on the file should be preceded by a comment explaining   which question is answered by that code. Do not give instructions to Stata manually using the interface. Your work must be done in codes.

5.   You must write your answers neatly by hand on the second page of this paper. Just write your answers. No explanations are needed.

6.   Submission of answers: You must submit the following documents:

i.   A good quality scan/photograph of your handwritten answers. The format of this file must be pdf.

ii.   Your log file. The format must be .smcl. iii.   Your do file. The format must be .do.

7.   Filename format: Every file you submit must be named in the following way:

lastname_firstname_studentID_hw1. For example, if I were to submit answers for this homework, my log file would be named, chatterjee_bibaswan_ 123456_hw1.smcl; assuming that my ID is 123456.

8.   All three files must be uploaded to Canvas, for the assignment.

9.   The deadline for submitting files is 5 PM on September 29, 2024.

10. I will not accept printed copies of the three documents, irrespective of when you try to submit them.

11. Note: Failure to submit all documents will invite penalties. Failure to extensively and clearly comment on your do file or to properly document your work on your log file will invite penalties. Failure to follow file format, file naming conventions might invite penalties. Illegible writing will invite a score of zero.

12. Make sure you sign your name on the second page of this file (by hand).

13. Round all numeric answers to three decimal points.

14. I do not need robust standard errors. Please do not use the option robust in your computation methods.

15. Hints: (i) Lookup the code, count, in Stata. (ii)  Not equal is written as != in Stata codes.

16. This homework assignment is worth 80 points.

1.   This data is an example of data (select from cross-section/time series/pooled/panel) [5 points]

2.   The number of counties is . [5 points]

3.   The average number of murders in 1986 is . [5 points]

4.   The maximum number of murders in 1986 is . [5 points]

5.   The average number of executions in 1986 is . [5 points]

6.   The maximum number of executions in 1986 is . [5 points]

7.   In 1986, how many counties had zero murders? . [5 points]

8.   In 1986, what percentage of counties had any executions? % [5 points]

9.   Suppose that aresearcher wants to find the effect of executions on murder in 1986. The researcher uses

Ordinary Least Squares. [5 x 6 = 30 points]

a.  The marginal effect of one more execution on murder is .

b.  If there are 20 executions, the researcher can predict that there will be murders.

c. True/False: The prediction in Question 9(b) makes sense.

d.  If there are 0 executions, the researcher can predict that there will be murders.

e. True/False: The prediction in Question 9(d) makes sense.

f.   Using the method used in Question 9, the correlation coefficient between murder and predicted murder is .

10. If executions go up by 1% in 1986, murders change by %. [5 points]

11. True/False: The marginal effect of arrests (in 1985) on murder (in 1986) is more than that of the marginal effect of executions (in 1985) on murder (in 1986). [5 points]