Econ 526 Final Empirical Project

Kim DH。，Park，HJ。 （2021）“卷烟价格上涨对吸烟者吸烟行为的影响

（注意：我们不会复制论文中的相同结果）

Variable Generation and Descriptive Statistics.
1. Generate the price increase variable to represent the periods after cigarette price increased in 2015
(year>=2015) Name it as “price”. Also, generate the log of household income variable. Finally, generate
the linear time trend variable that represents the time trends between 2011 through 2016; =1 in year 2011,
=2 in year 2012, …, =6 in year 2016. Name it as “trend”. (5 pts)
2. Print out the descriptive statistics for all variables in the data by smoking status. Then briefly explain
the result (Hint: use tabstat command with options as “by (smoke) statistics (mean sd n) longstub format
(%9.1g)”). (5 pts)
Analysis of Smoking Participation.
3. Run the standard OLS regression of smoke on price, marital status, age, educational level, working
status, chronic disease status, number of family members, (log) household income, drinking status, and
trend. Provide the interpretation of the estimated coefficients and the regression output. (10 pts)
4. Run the same regression above without the trend variable. How are they different? Do you think it
would be better to include the trend variable in the regression or not? (5 pts)
5. Test for the heteroskedasticity using the white test. If the heteroskedasticity exists, then use the robust
standard errors for the remaining questions. (5 pts)
3
6. Run the same regression for male and female samples respectively. Are they different from the
regression from question 3? Comment on it (Hint: use if option). (10 pts)
7. As the “smoke” variable is a binary dependent variable, the OLS above was the LPM. We can use the
Logit or Probit model to examine the probability of smoking. Run the Logit model with the same
specification in question 3. Then, report the average marginal effects of the coefficients and provide the
interpretation (Hint: use the margins, dydx(*) command). (10 pts)
8. Run the Probit model with the same specification as above and report the average marginal effects of
coefficients. Compare the reported average marginal effects of coefficients among LPM, Logit, and Probit
model and comment on it. (15 pts)

EasyDue™ 支持PayPal, AliPay, WechatPay, Taobao等各种付款方式!

E-mail: easydue@outlook.com  微信:easydue

EasyDue™是一个服务全球中国留学生的专业代写公司