Regression with Panel Data (SW Chapter 10)
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Transcript of Regression with Panel Data (SW Chapter 10)
Regression with Panel Data
(SW Chapter 10)
summary statistics
sum year
sum state
create year dummies
gen y82=(year==1982)
gen y83=(year==1983) gen y84=(year==1984) gen y85=(year==1985) gen y86=(year==1986) gen y87=(year==1987) gen y88=(year==1988)
minimum legal drinking age
gen da18=(mlda<19) gen da19=(mlda>=19)*(mlda<20) gen da20=(mlda>=20)*(mlda<21) gen da21=(mlda>=21)
fatality rate per 10,000 in the population
gen vfrall=10000*mrall
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==.)
mvdecode-Change numeric values to missing values
mvdecode mjailcom,mv(1)
replace jailcom = jailcom + mjailcom;
reg vfrall beertax if (year==1982), r
display
display "Adjusted Rsquared = " _result(8)
reg vfrall beertax if (year==1988), r dis "Adjusted Rsquared = " _result(8)
preserve gen dvfrall = vfrall-vfrall[_n-6] gen dbtax = beertax-beertax[_n-6]
keep
reg dvfrall dbtax, r dis "Adjusted Rsquared = " _result(8) restore
egen-Extensions to generate
by state, sort : egen float beertaxtest = total(beertax*(year==1982))
browse state year beertax beertax1982
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
areg-Linear regression with a large dummy-variable set
areg vfrall beertax, absorb(state) r
areg vfrall beertax y82 y83 y84 y85 y86 y87, absorb(state) r
reg vfrall beertax, r dis "Adjusted Rsquared = " _result(8)
areg vfrall beertax, absorb(state) r
areg vfrall beertax y82 y83 y84 y85 y86 y87, absorb(state) r
test y82 y83 y84 y85 y86 y87
areg vfrall beertax da18 da19 da20 jaild comserd vmilespd unrate lincperc y82 y83 y84 y85 y86 y87, absorb(state) r
test y82 y83 y84 y85 y86 y87 test da18 da19 da20
test jaild comserd test unrate lincperc
areg vfrall beertax da18 da19 da20 jaild comserd vmilespd y82 y83 y84 y85 y86 y87, absorb(state) r
test y82 y83 y84 y85 y86 y87 test da18 da19 da20 test jaild comserd
areg vfrall beertax mlda jailcom vmilespd unrate lincperc y82 y83 y84 y85 y86 y87, absorb(state) r
test y82 y83 y84 y85 y86 y87 test unrate lincperc
areg vfrall beertax da18 da19 da20 jaild comserd vmilespd unrate lincperc y82 y83 y84 y85 y86 y87, absorb(state) r cluster(state)
test y82 y83 y84 y85 y86 y87 test da18 da19 da20
test jaild comserd test unrate lincperc
Example: Traffic deaths and beer taxes in STATA