For the purpose of this exercise, the variables can be summarized as:
• Public: binary variable (1 if the individual chose to spend money on his/her family, 0 if the money was spent only on him/herself).
• Treatment: binary variable (1 if the individual had to exert effort to gain the money, 0 if s/he did not)
• Male: binary variable (0 for a female, 1 for a male)
• Age in years is a continuous variable
Model 1: Publici = βo + β1 Male I + β2 Treatmenti + ei
Model 2: Publici = βo + β1 Malei + β2 Treatmenti + β3 Treatment*Malei + ei
a) Does gender differ by treatment status? Also check if age varies by treatment status. What would a simple ttest on age (or gender) by treatment help us determine/conclude?
b) Use simple OLS regression technique to estimate models 1-2. Present the results in a Table similar to Table 3 of Dasgupta and Mani (2015). How do you interpret in words each of the β coefficients in the models? Also comment on the statistical significance of these coefficients.
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