Assignment 4
Instructions
You must use STATA and must turn in a copy of your Do-file. The Do-file must perform every task below neatly and correctly.
The work you hand in must be your own. You must NOT copy any answers from anyone or anywhere else. Please review FIU’s policy on academic misconduct for more information.
Questions
The data we will use in this assignment is based on an article by Roger Koenker, “Was Bread Giffen? The Demand for Food in England Circa 1790”.
Download and read the article linked above and write a detailed review.
a) Summarize the topic
b) Explain the approach
c) Summarize the conclusion
Please download the data from here and replicate Table 1 of Koenker’s article. To do so, you will need to estimate the following equations:
(1)QB,i=β0+β1Yi+εi
(2)QB,i=β0+β1Yi+β2Si+β3PB,i+β4PM,i+εi
(3)QM,i=β0+β1Yi+εi
(4)QM,i=β0+β1Yi+β2Si+β3PB,i+β4PM,i+εi
Report your results in a table.
Biddle and Hamersmesh (1990) studied the tradeoff between time spent sleeping and working, among other factors. The model below is a simplified multiple regression model used in the paper:
sleep =β0+β1 totwrk +β2educ+β3age+β4age2+β5 male +e
sleep is total minutes spent sleeping at night (per week)
totwork is total minutes spent working (per week)
educ is education, measured in years
age is measured in years
male is a dummy variable
You can download the dataset from the paper here. Alternatively, you can load it from the following location: http://estebanch.com/ECO4421/HW04/SLEEP75.DTA
a) Run the regression model, and report the results in a table
b) Is there evidence that men sleep more than women?
c) Is there a tradeoff between working and sleeping? What is it? is it significant?
Using the same dataset from the previous question, refer to the following equation for this question:
sleep=β0+β1totwrk+β2educ+β3age+β4age2+β5yngkid+e
a) Run the regression separately for men and women. Report your results in a table.
b) Are there differences in the two results sets?
You may want to run the following commands after loading your dataset for Question 2.
1
label variable QbPb “wk exp bread”
2
label variable QmPm “wk exp meat”
3
label variable S “Family size”
4
label variable Pb “Price of bread”
5
label variable Pm “Price of bread”
6
label variable Y “Total exp on food”
