This assignment consists of one question with two parts. Part I involves calculations while Part II
requires the use of Stata. See questions in the next page.
– explain all steps in their analysis and their findings
– not copy word-for-word from the course material without demonstrating own understanding
– use an equation editor to type equations, e.g. MS Word Equations; hand-written answers are not
– use the graphics produced by Stata
– present the regression results in a table format similar to Empirical Exercise 3.1 Solutions part (e)
– include a word count at the end of assignment
The word limit is a maximum, not an expectation. Equations, numbers in tables and Stata commands
are excluded from the word count. Citations and references/bibliography are NOT required.
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