Price captures the house price in real terms, nearinc is a dummy variable that captures whether...

 

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Price captures the house price in real terms, nearinc is a dummy variable that captures whether the house is located within 3 miles of the incinerator or not, taking the value 1 if it is near it. 1. Run the following two regression models: rprice 1981 B0 + B1 nearinc+ e, and rprice 1978-delta0 + delta1 nearinc +u Report and interpret your results 2. Calculate the difference-in-difference estimator using B1 and delta1. Hint: You will need to use scalar variables to access regression coefficient results from the b] array. Run a regression, and run display_b[cons] in STATA. Type help_b in STATA to learn more. 3. Estimate the model: rprice = B0 + B1 nearinc + B2 y81 + delta (y81 nearinc) + e Report and interpret your results. 4. Add the explanatory variables age, age^2, rooms, baths, land, and area. Estimate the new model. Report and interpret your results. Price captures the house price in real terms, nearinc is a dummy variable that captures whether the house is located within 3 miles of the incinerator or not, taking the value 1 if it is near it. 1. Run the following two regression models: rprice 1981 B0 + B1 nearinc+ e, and rprice 1978-delta0 + delta1 nearinc +u Report and interpret your results 2. Calculate the difference-in-difference estimator using B1 and delta1. Hint: You will need to use scalar variables to access regression coefficient results from the b] array. Run a regression, and run display_b[cons] in STATA. Type help_b in STATA to learn more. 3. Estimate the model: rprice = B0 + B1 nearinc + B2 y81 + delta (y81 nearinc) + e Report and interpret your results. 4. Add the explanatory variables age, age^2, rooms, baths, land, and area. Estimate the new model. Report and interpret your results.

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1 Regression Models a rprice1981 BO B1 nearinc e This regression model aims to analyze the impact of ... View the full answer