(Solved) ECON 306 Homework 6 Answers, Graded A+, 100%Econ 306 HW 6 Solutions
There are three problems in this homework. Be aware that this assignment is
... [Show More] relatively long. It is also
gets a higher weight in the course grade, but you have 50% more time to do it than the other HWs.
Problems 1 and 2 should be submited in the standard format we’ve used many times: The first pages
should contain your answers to all the questions, along with showing any key algebraic equations or
explanations you need to use along the way. After that, include a printout of the output from the
regressions you executed in support of your answers. Highlight any numbers in this output that you used
in the first section. (You are encouraged to save paper here, you may print this section with a small font,
double-sided and/or with 2-up format.) Last, include a copy of the DO file that contains the commands
you asked STATA to execute. Be sure you organize these in a way that will be clear to the reader.
Problem 3 will be presented in a slightly different, more polished style. Please refer to that specific
problem for details.
Problem 1 (50 points total)
The file Divorce.dta contains a four-period panel data set including various socioeconomic factors for all
50 US states plus the District of Columbia. The panels were taken in 1965, 1975, 1985, 1995. The
variables are:
divorce: number of divorces and annulments per state per one thousand population.
birth: number of live births per state per one thousand population.
marriage: number of marriages per state per one thousand population.
unemploy: total unemployment rate as a percentage of the total work force.
crime: total # of criminal offenses known to police per one hundred thousand population.
AFDC: average monthly AFDC payments per family. (AFDC is commonly known as Welfare, an income
support payment by the government to certain low income groups, particularly unmarried women with
children.)
Part 1)
a) Tell STATA this is a panel data set, with panels defined by entities “state” across periods “time.”.
The command for this is: xtset state time.
b) Divorce will be our dependent variable throughout. Hypothesize the sign of the coefficients (or
zero) that each of the independent variables in the dataset will have on divorce rates. Briefly
provide an explanation of your thinking.
Birth: Birth will be negative on divorce. If a couple has a child, they are less likely
to divorce. Couples often stay in their marriages for the sake of the kids........................... [Show Less]