Regression with Panel Data (SW Chapter 10)

# Regression with Panel Data (SW Chapter 10)

## Regression with Panel Data (SW Chapter 10)

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1. Regression with Panel Data(SW Chapter 10)

2. summary statistics

3. sum year

4. sum state

5. create year dummies • gen y82=(year==1982)

6. gen y83=(year==1983) • gen y84=(year==1984) • gen y85=(year==1985) • gen y86=(year==1986) • gen y87=(year==1987) • gen y88=(year==1988)

7. minimum legal drinking age • gen da18=(mlda<19) • gen da19=(mlda>=19)*(mlda<20) • gen da20=(mlda>=20)*(mlda<21) • gen da21=(mlda>=21)

8. fatality rate per 10,000 in the population • gen vfrall=10000*mrall

9. gen incperc=perinc/1000 • gen lincperc = ln(incperc) • gen vmilespd = vmiles/1000 • gen frmall = mrall/(vmiles/100000) • gen jailcom = ((jaild+comserd)>0) • gen mjailcom = (jaild==.)*(comserd==.)

10. mvdecode-Change numeric values to missing values • mvdecode mjailcom,mv(1)

11. replace jailcom = jailcom + mjailcom;

12. reg vfrall beertax if (year==1982), r

13. display

14. display "Adjusted Rsquared = " _result(8)

15. reg vfrall beertax if (year==1988), r • dis "Adjusted Rsquared = " _result(8)

16. preserve • gen dvfrall = vfrall-vfrall[_n-6] • gen dbtax = beertax-beertax[_n-6]

17. keep

18. regdvfralldbtax, r • dis "Adjusted Rsquared = " _result(8) • restore

19. egen-Extensions to generate

20. by state, sort : egen float beertaxtest = total(beertax*(year==1982)) • browse state year beertax beertax1982

21. egen beertax1988 = sum(beertax*(year==1988)) ,by(state) • egen vfrall1982 = sum(vfrall*(year==1982)) ,by(state) • egen vfrall1988 = sum(vfrall*(year==1988)) ,by(state) • gen beertax_diff=beertax1988-beertax1982 • gen vfrall_diff=vfrall1988-vfrall1982

22. areg-Linear regression with a large dummy-variable set

23. areg vfrall beertax, absorb(state) r

24. areg vfrall beertax y82 y83 y84 y85 y86 y87, absorb(state) r

25. reg vfrall beertax, r • dis "Adjusted Rsquared = " _result(8)

26. areg vfrall beertax, absorb(state) r

27. areg vfrall beertax y82 y83 y84 y85 y86 y87, absorb(state) r

28. test y82 y83 y84 y85 y86 y87

29. aregvfrallbeertax da18 da19 da20 jaildcomserdvmilespdunratelincperc y82 y83 y84 y85 y86 y87, absorb(state) r

30. test y82 y83 y84 y85 y86 y87 • test da18 da19 da20

31. test jaild comserd • test unrate lincperc

32. areg vfrall beertax da18 da19 da20 jaild comserd vmilespd y82 y83 y84 y85 y86 y87, absorb(state) r

33. test y82 y83 y84 y85 y86 y87 • test da18 da19 da20 • test jaild comserd

34. areg vfrall beertax mlda jailcom vmilespd unrate lincperc y82 y83 y84 y85 y86 y87, absorb(state) r

35. test y82 y83 y84 y85 y86 y87 • test unrate lincperc

36. aregvfrallbeertax da18 da19 da20 jaildcomserdvmilespdunratelincperc y82 y83 y84 y85 y86 y87, absorb(state) r cluster(state)

37. test y82 y83 y84 y85 y86 y87 • test da18 da19 da20

38. test jaild comserd • test unrate lincperc

39. Example: Traffic deaths and beer taxes in STATA