Econometrics Assignment

1. Complete the following estimations in stata and report the results in a single table with variable labels (not variable names), stars indicating p-values of 0.01, 0.05, and 0.10, r2, and observations. Examples of making these tables are available in the sample estout file, previous homework assignments, and previous homework solution files:

(a) income = β₀ + β₁grade + β₂age + β₃ASV AB + e

(b) Estimate another equation that includes at least 1 interaction term and a quadratic term.

(c) Estimate an equation with log(income) as the dependent variable.

2. Interpret each of the following from your results:

(a) the coefficient on grade in the first regression.

(b) the coefficient on your interaction term

(c) whether your quadratic indicates increasing or decreasing returns

(d) any coefficient where you logged the dependent variable

3. Choose the functional form that you prefer and support your decision using our specification search criteria from class.