American Housing Survey III
Get Stata Data Set Http://research.umbc.edu/~coates/ec611/owners_stata.zip extract owners_stata.dta this is a Stata 6 format data file Open Stata set mem 40m set matsize 600
Get Stata Data Set Open the data set You can do this by using the pull down menu You should have 2082 observations, 103 variables no duplicate controls no negative lprice, unitsf, lot
Logging your work log using “your log file name” set more off This will keep track of everything you do and store results set more off this will cause results to not pause every few lines - with a log file recording everything you can always view results there
House values Different value of a bedroom (bathroom, dining room, etc.) by city (region)? Yes: estimate separate model for each CMSA No: everything is the same: one model average value higher, contribution of a room the same: different intercepts
Everything is different Sort cmsa tabu cmsa what do you learn? By cmsa: reg lprice explanatory variables test for equality of coefficients
Intercept is different yit = xitb + vt + eit i is household i, t is CMSA t Is vt correlated with xit? Yes, then fixed effects estimation. Xtreg lprice …, i(cmsa) fe No, then random effects estimation. Xtreg lprice …, i(cmsa) Unsure, do random effects, test using xthaus
Model specification Functional form Correct variables logs non-parametric Correct variables age commute time neighborhood
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