Econometrics stata program question
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Project 5
For Project 5, you need to use the Stata data set Project 3, 4&5.dta. The data is from the last two waves of the British Household Panel Survey: wave 17 and wave 18. The description of the variables is listed in Table 1:
Table 1
You will also find information on residence of the respondent captured by a set of regional dummies (reg1x to reg12x). You need to choose one of the satisfaction variables from the list of satisfaction variables (hlstat, jbsat2x, jbsat4x, jbsat6x, jbsat7x, jbsat, lfsato and ghql) and use both waves of the data-set (wave 17 and wave 18). Your choice of satisfaction variable should not match that of any otherstudent who is enrolled in the course. So for example, if one of you is working with health satisfaction, then none of the others can work with health satisfaction. Given the data-set, you need to answer the following:
a)Irrespective of the ordinal nature of the satisfaction variable, treat the variable as a continuous variable. Form a panel data-set where pid represents the cross-sectional unit and wave represents the time variable. Estimate a linear panel data random effects model using one of the satisfaction variables as your dependent variable (depending on your choice), where satisfaction depends on number of children in the household, sex of the respondent, real annual household income, marital status, educational status, change in financial situation compared to last year, expectation about the financial situation for a year ahead, and whether the respondent saves from current income. Comment on your findings.
b)Now estimate a linear panel data fixed effects model and perform a Hausman test in order to choose between random-effects and fixed-effects model. Comment on your findings.
c)Depending on your results in part b), select the model as indicated by the Hausman test. Now add the regional dummies and comment on your results. |
Assignments should be a maximum of 1500 words in length excluding the references (if you want any reference to be cited) and the Tables.
All course work assignments that contribute to the assessment of a module are subject to a word limit, as specified in the module handbook for that module. Unless stated specifically otherwise in the relevant module handbook EVERYTHING except the title, bibliography and any appendices is included in the word count. A detailed explanation of word limit rules can be found at the following link.
e) Project 5: Suppose you have selected Project 5 then decide which satisfaction variable you would like to work on. Note here you need to use both waves of data. You need to work with only onesatisfaction variable, but using both waves of data. Now, suppose someone has already signed for jbsat (one of the eight satisfaction variables), then you need to select any other satisfaction variables out of the remaining 7 satisfaction variables using data from both waves and so on.
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applied_econometrics_data_analysis_in_stata.docx
