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the assignment is to help you get more comfortable applying statistical methods and using software,

INSTRUCTIONS TO CANDIDATES
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Individual Assignment 1

EC295 – Winter 2022 

Assignment Description In this assignment you are asked to manipulate data, estimate statistical relationships, and interpret the findings. The main goal behind the assignment is to help you get more comfortable applying statistical methods and using software, but also to think about a policy-relevant topic that economists actively research today.

The questions below guide you through the process of statistical estimation. You are provided the relevant Stata commands you will need, some of which you will not have seen before. It will therefore be useful for you to use the “help” function in Stata, and/or to look up the command in the Stata reference manuals (which are available within Stata as PDFs), or Google. You are also, as always, welcome to ask me for help.

I strongly suggest that you start this assignment early because it will not be possible (in my opinion) to do well if you start close to the due date. There are parts that you may find difficult; you will want to identify them and leave enough time to ask questions if necessary.

Assignment Instructions

Data analysis

In mylearningspace, you will find a datafile called “card.dta” that contains the data for this assignment. The data come from David Card’s 1995 paper “Using geographic variation in college proximity to estimate the return to schooling”. Download the dataset it on to your computer and make note of the folder where you save it.

I have also provided a template dofile that all students must use to write their assignment dofile (if you are using R, you will need to recreate something similar to this). Store it in the same folder where you put your data. You will need to manipulate that template in the following way:

-Rename the file from “assign1 template.do” to your last name followed by your student number (no spaces)

- After cd, replace INSERT THE PATH TO THE FOLDER WHERE YOU STORE THE DATA with the path to the folder where you stored the card_ec295.dta dataset. Do not remove the quotation marks.

- After log using, replace INSERT YOUR LAST NAME AND STUDENT NUMBER HERE with your last name and student number, with no space between the two. Do not remove the quotation marks

- After set seed, replace INSERT YOUR STUDENT NUMBER HERE with your full student number.

2 Leave all other commands and comments untouched. You should type in your Stata commands below the line that says “Insert your stata commands below here”, but above “Insert your stata commands above here”. Note that the set seed and sample commands will take a random 95% subsample of the data that is different for every student. For this reason, the numbers that you get with your output will not be the same for any two students. Be mindful of this if you are comparing your work with your peers.

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