Describe the dataset, providing the main descriptive statistics for panel data and also replying

The paper aimed at providing further empirical evidence to the economic model of crime already present in the literature. The dataset collects information on a set of variables relating to a sample of 90 counties of North Caroline for the period 1981-1987.

Using panel data techniques, estimate the following equation model:

lcrmerte¿= β0+ β1 lprbarr¿+ β2 lprbconv¿+ β3 lprbpris¿+ β4 lavgsen¿+ β5 lpolpc¿+ β6 ldensity¿+ β7 lpctymle¿+ β8 lpctm

 i=1,…..,N; t=1,…..,T                                     (1)

 where the variables are described in the following table:

 (Notice that you need to transform the variables in logarithm).

(1) Describe the dataset, providing the main descriptive statistics for panel data and also replying to the following questions:

1.1.  How many observations are there in the dataset? Answer:

1.2.  Determine how many different counties there are in the dataset. Answer: 

1.3.  Determine how many years there are in the dataset. Answer:

 1.4 Is the panel balanced or unbalanced? Why? Answer: 

1.5.  What are time invariant variables? What are time-variant variables? Answer: 

1.6.  Describes the variables according to their mean and their variability (compare the within, between, and overall variability)

Answer:

(2)  Estimate the equation by pooled OLS and report the results. 

(2.1) What are the statistical significant variables? (at the 10% significant level)

Answer: 

(2.2) What are the estimated coefficient of lprbarr (β1) and lpolpc (β5 ¿). If they are statistically significant, interpret the results.

Answer: 

(3)  Now estimate the equation using fixed effects.

(3.1) What are the statistical significant variables? (at the 10% significant level)

Answer:

(3.2) What are the estimated coefficient of lprbarr (β1) and lpolpc (β5 ¿). If they are statistically significant, interpret the results.