a) Estimate a standardized regression model with ypcgr as the dependent variable and explanatory variables edavg, testavg, and ypc60. Don't forget to suppress the intercept (constant) in your regression. Report your regression here. Interpret the coefficients of your regression model. Which has a greater effect on growth? Years in School or Test Scores? I b) Use the "test" statement in STATA to determine if the effect of Years in School is equal to the effect of Test Scores on growth. Report your results here. State your null and alternative hypotheses of this test and your conclusion, c) Here we are going to replicate the results of part b) by using the restricted regression and unrestricted regression F-statistic based on R-square measures. First, report the restricted regression that is implied by the null hypothesis of part b). (Remember you need to suppress the constant term in your restricted regression.) You have already run the unrestricted regression in part a). Explicitly show me how you would calculate the F-statistic reported in part b). d) Now add the standardized versions of the variables proprts and open to your regression of part a) and run it being sure to suppress the intercept. Report your regression equation here. Which is more important, property rights or the openness of the economy in promoting growth? Explain your answer. e) Is the adjusted R-square of the model in part d) greater or less than the adjusted R- square of the model of part a)? Which model do you prefer between the model of part a) or the model of part d)? Explain your answer. f) Report the STATA code you used to complete this problem. Variables Value label Filter variables here Name Label Type M code Country Code str3 name Country Name str20 open Openness float ed60 Average Years of School... float ypc60 GDP per Capita, 1960 float ypcgr Average Annual Growth... float testavg Average Test Scores, 19... float proprts Property Rights float edavg Average Years of School... float region Region str5 Format %3s %20s %9.09 %9.09 %9.09 %9.09 %9.09 %9.09 %9.09 %95 HE Code nane open proprts region edee 6.131 ypcer .995 edavg 7.215 1 7.395 10.618 ARG 6.5 LATAM 2 AUS testavg 3.92 5.293658 5.859224 87 9.815 11.4515 COM Argentina Australia Austria Belgium Brazil 2 9.32 9.74 AUT 1 8.276 2.218 2.963 2.84 7.365 9.852 C-EUR 4 BEL 1 7.389 7.759 5.841077 9.69 9.114 C-EUR 5 BRA .21 2.395 2.785 7.9 LATAM 5.2845 11.091 6 GAN 1 3.072 9.114 10.963 9.74 CONM Canada Switzerland Chile 10.419 14.872 2.402 1.446 2.6375 5.037834 5.141525 4.649385 7 CHE 1 10 11.845 C-EUR 8 CHE 59 6.188 3.813 7.82 LATAN 8.066 4. 109 9 CH China e 2.26 2.416 4.341 1.999 .685 ASTA 7.79 7.39 le 4.939448 4.152123 COL 5.414 LATAM -33 1 3.781 5.529 CYP 4.663 4.54212 7.2 MENA 12 ONK 1 9.88 2.525 3.065 18.917 1.476 4.693 2.254 4.962103 9.74 Colombia Cyprus Denmark Egypt Spain Finland N-EUR 13 10.6395 3.8815 EGY -21 2.639 4.829945 5.77 MENA 14 ESP 1 1.ees 5.794 6.851 9.62 S-EUR 3.426 2.95 15 FIN 4.829886 5.126301 7.6495 9.256 1 7.438 9.74 N-EUR 16 1 7.86 2.649 5.00048 9.74 8.729 FRA GER France United Kingdom 17 6.729 9.113 1.392 C-EUR C-EUR 1 9.682 9.79 11.119 18 GHA Ghana .33 .832 2.09 1.217 3.194 4.949998 3.602821 4.6077 6.32 3.5755 SSAFE 19 GRC Greece 1 5.94 4.159 7.78 8.13 7.9205 8.48 S-EUR ASTA 20 HKG 1 5.815 Hong Kong Indonesia India 3.047 .96 5.572 3.355 5.19492 3.879872 TON IND .72 1.6 7.53 ASIA 4.425 2.754 22 -838 2.251 ASLA 23 IRL Ireland 385 1.169 7.245 1712 3.28 9.74 C-EUR 4.281425 4.99452 4.238585 4.935566 24 TRN 5.205 2.635 8.106 8.788 3.028 Iran 4.139 2.075 2.835 e MENA 25 TSU Iceland 6.50 8.4305 N-EUR 26 ISR 433 8.136 2.911 4.686297 0.59 MENA Israel Italy 27 ITA 1 5.361 6.817 22385 2.948 4.757603 9.46 5.818 2.575 9.674999 8.073 6.428 S-EUR 28 JOR 1 1.318 6.76 MENA 4.263709 5.31043) -95 4.652 4.256 9.74 ASTA Jordan Sapan Korea, Republic of Morocco 9.479 4.98 3e 11.0445 3.660s KOR 77 1.571 ASIA 5.954 2.62 3.71 7.e9 31 MAR 49 .611 5.337576 3.327198 3.9975 32 HEX .31 1.322 3.97 2.147 2 7.51 2.0975 5.9665 6.262 Mexico Malaysia Netherlands MENA LATAM ASIA 33 HYS 1 2.217 7.98 4.838439 5.114952 34 NLD 1 10 9.365 C-EUR 9.263 8.239 1995 2.442 3.816 1.228 35 NOR 1 9.051 10.768 N-EUR Norway New Zealand 4.830202 4.978493 36 31 11.555 9.74 10.536 COM PER Peru 4.267 3.125 5.94 5.46 PHL 6.293 6.1945 2.022 LATAM ASIA 1.325 3.647004 39 PET 1 4.563729 5.215 Philippines Portugal Home Singapore 40 OH 1.647 5-EU 5 EUR 7.28 7.225 4.195 4.562232 5.330431 3.6135 7.005 41 1 ASTA code name edhe proprts edave open .33 ypc6B .832 ypcer 1.217 testavg 3.6e2821 region SSAFR 18 GHA Ghana 1.892 6.32 3.5755 19 GRC Greece 1 5.94 4.159 3.194 4.6077 7.78 S-EUR 7.92es 8.4885 20 HKG 1 5.815 3.847 5.19492 ASIA 5.577 3.385 Hong Kong Indonesia India 8.13 7.53 21 IDN .72 1.6 .96 4.425 ASIA 3.879873 4.281425 22 IND @ 2.751 8.28 2.754 ASIA .838 5.288 23 IRL Ireland 1.169 7.245 .712 .85 4.139 4.99457 9.74 C-EUR 24 IRN Iran @ 2.875 4.218588 8.788 3.028 8.4395 MENA 25 Iceland 2.635 8. 106 5.361 2.835 4.935566 1SL ISR N-EUR 6.587 8.136 26 .33 2.918 4.686297 8.59 9.674999 NENA 27 ITA 1 6.817 2.948 4.757608 8.073 S-EUR 28 JOR 5.818 2.575 9.479 9.46 6.76 1 2.305 1.318 4.263709 6.428 MENA 29 JP .95 4.657 4.256 5.310433 9.74 KOR 4.98 11.0445 8.6605 .77 ASIA ASIA 3e 31 5.954 5.337576 8.71 MAR .49 1.571 1.322 3.97 2.62 7.09 .611 3.98 MENA 32 MEX .31 2 7.51 2.9975 5.9665 6.262 LATAM 3.327198 3.9975 4.838439 5.114952 MYS 1 3.217 2.147 7.98 ASIA 34 NLD 1 8.338 9.263 3.985 2.442 3.016 10 9.3385 C-EUR 35 NOR 1 9.651 4.830202 9.9 10.768 N-EUR 36 NEL 8.239 11.555 8.98 1.228 .31 .38 4.978493 9.74 10.536 37 PER 3.118 COM LATAM .957 6.293 38 Israel Italy Jordan Japan Korea, Republic of Morocco Mexico Malaysia Netherlands Norway New Zealand Peru Philippines Portugal Romania Singapore Sweden Thailand Tunisia Turkey Taiwan uruguay USA South Africa Zimbabwe 4.267 4.448 PHL 5.94 5.46 - 26 1.325 3.125 3.647804 4.563729 6.1945 ASIA PRT 1 2.022 3.434 1.047 9.14 S-EUR 40 ROM 3.155 7.225 4.195 3.915 3.587 .18 S-EUR 41 SGP 4.562232 5.330431 7.28 9.32 1 6.871 5.216 8.6135 7.ees 10.2ees ASIA 42 2.28 10.112 1 SWE THA 8.685 2.148 5.813004 9.52 N-EUR 1 2.601 1.121 4.631 7.61 5.8565 ASIA 44 TUN 4.564709 3.795032 .26 .828 3.191 1.929188 2.7 6.45 MENA 45 TUR .22 2.137 2.634 4.1955 4.127964 MENA 46 The 1.468 2.351 6.667 1.254 4.364 5.316 7.46 9.23 5.451672 7.32 ASIA 47 URY ..13 5.84 4.3 7.87 6.8365 USA 1 10.179 12.414 2.498 LATAM COMM le 4.902636 3.089362 ZAF 16 4.321 4.917 1.075 11.484 5.8345 5.9265 SSAFR $ ZWE 3.559 6.96 6.18 1.162 1.919 4.107062 SSAFR a) Estimate a standardized regression model with ypcgr as the dependent variable and explanatory variables edavg, testavg, and ypc60. Don't forget to suppress the intercept (constant) in your regression. Report your regression here. Interpret the coefficients of your regression model. Which has a greater effect on growth? Years in School or Test Scores? I b) Use the "test" statement in STATA to determine if the effect of Years in School is equal to the effect of Test Scores on growth. Report your results here. State your null and alternative hypotheses of this test and your conclusion, c) Here we are going to replicate the results of part b) by using the restricted regression and unrestricted regression F-statistic based on R-square measures. First, report the restricted regression that is implied by the null hypothesis of part b). (Remember you need to suppress the constant term in your restricted regression.) You have already run the unrestricted regression in part a). Explicitly show me how you would calculate the F-statistic reported in part b). d) Now add the standardized versions of the variables proprts and open to your regression of part a) and run it being sure to suppress the intercept. Report your regression equation here. Which is more important, property rights or the openness of the economy in promoting growth? Explain your answer. e) Is the adjusted R-square of the model in part d) greater or less than the adjusted R- square of the model of part a)? Which model do you prefer between the model of part a) or the model of part d)? Explain your answer. f) Report the STATA code you used to complete this problem. Variables Value label Filter variables here Name Label Type M code Country Code str3 name Country Name str20 open Openness float ed60 Average Years of School... float ypc60 GDP per Capita, 1960 float ypcgr Average Annual Growth... float testavg Average Test Scores, 19... float proprts Property Rights float edavg Average Years of School... float region Region str5 Format %3s %20s %9.09 %9.09 %9.09 %9.09 %9.09 %9.09 %9.09 %95 HE Code nane open proprts region edee 6.131 ypcer .995 edavg 7.215 1 7.395 10.618 ARG 6.5 LATAM 2 AUS testavg 3.92 5.293658 5.859224 87 9.815 11.4515 COM Argentina Australia Austria Belgium Brazil 2 9.32 9.74 AUT 1 8.276 2.218 2.963 2.84 7.365 9.852 C-EUR 4 BEL 1 7.389 7.759 5.841077 9.69 9.114 C-EUR 5 BRA .21 2.395 2.785 7.9 LATAM 5.2845 11.091 6 GAN 1 3.072 9.114 10.963 9.74 CONM Canada Switzerland Chile 10.419 14.872 2.402 1.446 2.6375 5.037834 5.141525 4.649385 7 CHE 1 10 11.845 C-EUR 8 CHE 59 6.188 3.813 7.82 LATAN 8.066 4. 109 9 CH China e 2.26 2.416 4.341 1.999 .685 ASTA 7.79 7.39 le 4.939448 4.152123 COL 5.414 LATAM -33 1 3.781 5.529 CYP 4.663 4.54212 7.2 MENA 12 ONK 1 9.88 2.525 3.065 18.917 1.476 4.693 2.254 4.962103 9.74 Colombia Cyprus Denmark Egypt Spain Finland N-EUR 13 10.6395 3.8815 EGY -21 2.639 4.829945 5.77 MENA 14 ESP 1 1.ees 5.794 6.851 9.62 S-EUR 3.426 2.95 15 FIN 4.829886 5.126301 7.6495 9.256 1 7.438 9.74 N-EUR 16 1 7.86 2.649 5.00048 9.74 8.729 FRA GER France United Kingdom 17 6.729 9.113 1.392 C-EUR C-EUR 1 9.682 9.79 11.119 18 GHA Ghana .33 .832 2.09 1.217 3.194 4.949998 3.602821 4.6077 6.32 3.5755 SSAFE 19 GRC Greece 1 5.94 4.159 7.78 8.13 7.9205 8.48 S-EUR ASTA 20 HKG 1 5.815 Hong Kong Indonesia India 3.047 .96 5.572 3.355 5.19492 3.879872 TON IND .72 1.6 7.53 ASIA 4.425 2.754 22 -838 2.251 ASLA 23 IRL Ireland 385 1.169 7.245 1712 3.28 9.74 C-EUR 4.281425 4.99452 4.238585 4.935566 24 TRN 5.205 2.635 8.106 8.788 3.028 Iran 4.139 2.075 2.835 e MENA 25 TSU Iceland 6.50 8.4305 N-EUR 26 ISR 433 8.136 2.911 4.686297 0.59 MENA Israel Italy 27 ITA 1 5.361 6.817 22385 2.948 4.757603 9.46 5.818 2.575 9.674999 8.073 6.428 S-EUR 28 JOR 1 1.318 6.76 MENA 4.263709 5.31043) -95 4.652 4.256 9.74 ASTA Jordan Sapan Korea, Republic of Morocco 9.479 4.98 3e 11.0445 3.660s KOR 77 1.571 ASIA 5.954 2.62 3.71 7.e9 31 MAR 49 .611 5.337576 3.327198 3.9975 32 HEX .31 1.322 3.97 2.147 2 7.51 2.0975 5.9665 6.262 Mexico Malaysia Netherlands MENA LATAM ASIA 33 HYS 1 2.217 7.98 4.838439 5.114952 34 NLD 1 10 9.365 C-EUR 9.263 8.239 1995 2.442 3.816 1.228 35 NOR 1 9.051 10.768 N-EUR Norway New Zealand 4.830202 4.978493 36 31 11.555 9.74 10.536 COM PER Peru 4.267 3.125 5.94 5.46 PHL 6.293 6.1945 2.022 LATAM ASIA 1.325 3.647004 39 PET 1 4.563729 5.215 Philippines Portugal Home Singapore 40 OH 1.647 5-EU 5 EUR 7.28 7.225 4.195 4.562232 5.330431 3.6135 7.005 41 1 ASTA code name edhe proprts edave open .33 ypc6B .832 ypcer 1.217 testavg 3.6e2821 region SSAFR 18 GHA Ghana 1.892 6.32 3.5755 19 GRC Greece 1 5.94 4.159 3.194 4.6077 7.78 S-EUR 7.92es 8.4885 20 HKG 1 5.815 3.847 5.19492 ASIA 5.577 3.385 Hong Kong Indonesia India 8.13 7.53 21 IDN .72 1.6 .96 4.425 ASIA 3.879873 4.281425 22 IND @ 2.751 8.28 2.754 ASIA .838 5.288 23 IRL Ireland 1.169 7.245 .712 .85 4.139 4.99457 9.74 C-EUR 24 IRN Iran @ 2.875 4.218588 8.788 3.028 8.4395 MENA 25 Iceland 2.635 8. 106 5.361 2.835 4.935566 1SL ISR N-EUR 6.587 8.136 26 .33 2.918 4.686297 8.59 9.674999 NENA 27 ITA 1 6.817 2.948 4.757608 8.073 S-EUR 28 JOR 5.818 2.575 9.479 9.46 6.76 1 2.305 1.318 4.263709 6.428 MENA 29 JP .95 4.657 4.256 5.310433 9.74 KOR 4.98 11.0445 8.6605 .77 ASIA ASIA 3e 31 5.954 5.337576 8.71 MAR .49 1.571 1.322 3.97 2.62 7.09 .611 3.98 MENA 32 MEX .31 2 7.51 2.9975 5.9665 6.262 LATAM 3.327198 3.9975 4.838439 5.114952 MYS 1 3.217 2.147 7.98 ASIA 34 NLD 1 8.338 9.263 3.985 2.442 3.016 10 9.3385 C-EUR 35 NOR 1 9.651 4.830202 9.9 10.768 N-EUR 36 NEL 8.239 11.555 8.98 1.228 .31 .38 4.978493 9.74 10.536 37 PER 3.118 COM LATAM .957 6.293 38 Israel Italy Jordan Japan Korea, Republic of Morocco Mexico Malaysia Netherlands Norway New Zealand Peru Philippines Portugal Romania Singapore Sweden Thailand Tunisia Turkey Taiwan uruguay USA South Africa Zimbabwe 4.267 4.448 PHL 5.94 5.46 - 26 1.325 3.125 3.647804 4.563729 6.1945 ASIA PRT 1 2.022 3.434 1.047 9.14 S-EUR 40 ROM 3.155 7.225 4.195 3.915 3.587 .18 S-EUR 41 SGP 4.562232 5.330431 7.28 9.32 1 6.871 5.216 8.6135 7.ees 10.2ees ASIA 42 2.28 10.112 1 SWE THA 8.685 2.148 5.813004 9.52 N-EUR 1 2.601 1.121 4.631 7.61 5.8565 ASIA 44 TUN 4.564709 3.795032 .26 .828 3.191 1.929188 2.7 6.45 MENA 45 TUR .22 2.137 2.634 4.1955 4.127964 MENA 46 The 1.468 2.351 6.667 1.254 4.364 5.316 7.46 9.23 5.451672 7.32 ASIA 47 URY ..13 5.84 4.3 7.87 6.8365 USA 1 10.179 12.414 2.498 LATAM COMM le 4.902636 3.089362 ZAF 16 4.321 4.917 1.075 11.484 5.8345 5.9265 SSAFR $ ZWE 3.559 6.96 6.18 1.162 1.919 4.107062 SSAFR