BOSTON COLLEGE
Department of Economics

EC 228 Econometrics, Prof. Baum, Ms. Yu, Fall 2003

Problem Set 4

Due at classtime, 16 October 2003

Problem sets will not be accepted after their due dates. Please make sure your name is legible on each page of your answers.

For some these problems, you must use Stata, but will not make use of the RAW files listed in the text, as all of these data are available in Stata format over the Internet. Please consult the "Wooldridge datasets: descriptions and access commands" link on the course home page. All you need to do is copy the "use http://fmwww..." line from each dataset to be used into Stata's command window. The name of each dataset is that given in the text, without the .RAW extension; e.g. BWGHT.RAW is referred to as just BWGHT (with no period nor extension). For example,

. use http://fmwww.bc.edu/ec-p/data/wooldridge/bwght

For each of the empirical problems, hand in a printout from Stata, annotated with your comments. The "log" icon in the Stata toolbar may be used to create a file containing both your commands and Stata's response. It may be easier to work with a text-format log; the command 'log using ps2.log' will create a text log. Use the 'Viewer' within Stata to examine and print the log.

All Stata problems in this problem set may be performed with Small Stata (which has a limit of 1,000 observations) as well as Intercooled Stata (available in the SLSC). Either Version 7 or Version 8 of Stata may be used.