In the first portion of this assignment, you are tasked with estimating the positive / negative...
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In the first portion of this assignment, you are tasked with estimating the positive / negative externality of living in Waterloo, Ontario compared to Kitchener, Ontario as measured through real estate prices. To accomplish this, we have collected data on listed prices of 30 houses in Waterloo and 30 houses in Kitchener. The data were collected from www.realtor.ca in 2017/18. We have collected the associated data on these 60 homes for the following standard explanatory variables in the housing market: Square footage Lot size # of bedrooms # of bathrooms Age of the home The Waterloo variable takes the value of 1 for all houses in Waterloo (30) and the value of 0 for all houses in Kitchener (30). All our data are given in the file named "Kitchener-Waterloo" posted on LEARN. Our model takes the form: Listed Pricei = 0 + 1 Waterloo + Other Variables + Ei where "i" refers to the ith observation Your econometrician (me) has supressed the constant, B0, when he estimated the regression. Effectively, forcing a property with no features to have a value of zero...makes sense. Your coefficient estimate of 1 is what you are primarily interested in since it measures the price differential of an average house in Waterloo relative to Kitchener, controlling for everything else (your other explanatory variables). Econometrician's Report: Variable Name Estimated Coefficient Standard Error T-Ratio P-value CONSTANT Waterloo Square Footage Lot Size Bedrooms Bathrooms Age of Home Adjusted R2 0 N/A $70,310.71568 $243.8385165 $17.45807031 -$19,026.78008 $60,300.74169 $297.2589033 N/A N/A 33,345.97974 2.109 0.0396 30.65467519 7.954 0.0000 3.710005251 4.706 0.0000 21,667.45507 -0.878 0.3838 25,628.4966 2.353 0.0223 833.9332011 0.356 0.7229 0.9605 In the first portion of this assignment, you are tasked with estimating the positive / negative externality of living in Waterloo, Ontario compared to Kitchener, Ontario as measured through real estate prices. To accomplish this, we have collected data on listed prices of 30 houses in Waterloo and 30 houses in Kitchener. The data were collected from www.realtor.ca in 2017/18. We have collected the associated data on these 60 homes for the following standard explanatory variables in the housing market: Square footage Lot size # of bedrooms # of bathrooms Age of the home The Waterloo variable takes the value of 1 for all houses in Waterloo (30) and the value of 0 for all houses in Kitchener (30). All our data are given in the file named "Kitchener-Waterloo" posted on LEARN. Our model takes the form: Listed Pricei = 0 + 1 Waterloo + Other Variables + Ei where "i" refers to the ith observation Your econometrician (me) has supressed the constant, B0, when he estimated the regression. Effectively, forcing a property with no features to have a value of zero...makes sense. Your coefficient estimate of 1 is what you are primarily interested in since it measures the price differential of an average house in Waterloo relative to Kitchener, controlling for everything else (your other explanatory variables). Econometrician's Report: Variable Name Estimated Coefficient Standard Error T-Ratio P-value CONSTANT Waterloo Square Footage Lot Size Bedrooms Bathrooms Age of Home Adjusted R2 0 N/A $70,310.71568 $243.8385165 $17.45807031 -$19,026.78008 $60,300.74169 $297.2589033 N/A N/A 33,345.97974 2.109 0.0396 30.65467519 7.954 0.0000 3.710005251 4.706 0.0000 21,667.45507 -0.878 0.3838 25,628.4966 2.353 0.0223 833.9332011 0.356 0.7229 0.9605
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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