Problem Set 9
Textbook Problems:

8.12, 9.9 (a), (b), (c),  (f).
 

Additional Problems:

1. The data set lowbw.dta contains information on the birth weight of babies and various characteristics of their mothers and the nature of their pregnancies. Using these data, estimate a regression model to explain the determinants of  a child’s birth weight. Provide the rationale for the inclusion of each variable and, if required, the functional form chosen. Note:  Don’t use the dummy for history of premature labor, because there is an error in the data.

(a) Present the results in a table, using the same format as in problem sets 6 and 7.

(b) Interpret each coefficient and comment on its statistical and substantive significance.

(c) Is there evidence that smoking by the mother reduces the birth weight of the child?

2.  A researcher who is studying the determinants of rental prices of apartments starts with the following ideas: (i) Prices are high if the apartment is closer to the center of the city, (ii) They are high if  public transportation is readily available, (iii) The closer the apartment is to the center of the city, the less public transportation matters and (iv) Rents are higher in high-rise buildings. Write down a regression model to represent this model. Explain what sign you expect for each coefficient and why.