1. American Housing Survey III

2. Get Stata Data Set
extract owners_stata.dta
this is a Stata 6 format data file
Open Stata
set mem 40m
set matsize 600

3. 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

4. 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

5. 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

6. Everything is different
Sort cmsa
tabu cmsa
what do you learn?
By cmsa: reg lprice explanatory variables
test for equality of coefficients

7. 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

8. Model specification Functional form Correct variables logs
non-parametric
Correct variables
age
commute time
neighborhood

9. More Variables