Econ 4355 econometrics - describe to see the description of

Question

Describe to see the description of the variables.

1. Use the data in vote1.dta to answer this question.

(a) Estimate the following model using OLS

vote_a = β₁ + β₂prty_a + β₃democ_a + β₄lexp_a + β₅lexp_b + e.

Report the results.
(b) Obtain e^{^} and y^{^} and plot |e^{^}| vs. y^{^}.
(c) Estimate the model again with White robust standard errors and report the results.

2. Use the data in phillips2.dta for this question. We have the following Phillips Curve model:

inf_t = β₁ + β₂unem_t + e_t.

(a) Estimate the above model using OLS and report the regression.
(b) Plot e^{^}_t vs. e^{^}_t-1.

(c) Estimate the model again with Newey-West robust standard errors and report the results.

Attachment:- data files.rar