Consider the following 2-stage least squares regression output: . ivregress 2sls jail c.age##c.age i.urban (compulsory = quarter1 quarter2 quarter3) Instrumental variables (2SLS) regression Number of obs 4,290 Wald chi2(4) 745.85 Prob > chi2 0.0000 R-squared 0.0982 Root MSE .46907 jail | Coef. Std. Err. P>]z]| [95% Conf. Interval] compulsory | -.4994462 .2083769 -2.40 0.017 -.9078573 -.091035 age | .1411681 .0061719 22.87 0.000 .1290714 .1532649 c.age#c.age | -.0021276 .0000906 -23.49 0.000 -.0023052 -.0019501 1.urban | .0471129 .0300781 1.57 0.117 -.0118391 1060649 „cons | -1.202564 .1196858 -10.05 0.000 -1.437144 -.9679844 Instrumented: compulsory Instruments: age c.age#c.age 1.urban quarter1 quarter2 quarter3 In order to generate this output you need to 1) obtain the predicted value of compulsory form a regression of compulsory on a constant, quarter1, quarter2, and quarter3; 2) perform an IV regression of jail on a constant, age, age?, urban and compulsory using the predicted value of compulsory from the previous step as an instrument for compulsory O True O False
Consider the following 2-stage least squares regression output: . ivregress 2sls jail c.age##c.age i.urban (compulsory = quarter1 quarter2 quarter3) Instrumental variables (2SLS) regression Number of obs 4,290 Wald chi2(4) 745.85 Prob > chi2 0.0000 R-squared 0.0982 Root MSE .46907 jail | Coef. Std. Err. P>]z]| [95% Conf. Interval] compulsory | -.4994462 .2083769 -2.40 0.017 -.9078573 -.091035 age | .1411681 .0061719 22.87 0.000 .1290714 .1532649 c.age#c.age | -.0021276 .0000906 -23.49 0.000 -.0023052 -.0019501 1.urban | .0471129 .0300781 1.57 0.117 -.0118391 1060649 „cons | -1.202564 .1196858 -10.05 0.000 -1.437144 -.9679844 Instrumented: compulsory Instruments: age c.age#c.age 1.urban quarter1 quarter2 quarter3 In order to generate this output you need to 1) obtain the predicted value of compulsory form a regression of compulsory on a constant, quarter1, quarter2, and quarter3; 2) perform an IV regression of jail on a constant, age, age?, urban and compulsory using the predicted value of compulsory from the previous step as an instrument for compulsory O True O False
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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