American Housing Survey III

1. American Housing Survey III

2. Get Stata Data Set • Http://research.umbc.edu/~coates/ec611/owners_stata.zip • extract owners_stata.dta • this is a Stata 6 format data file • Open Stata • set mem 40m • set matsize 600

3. Get Stata Data Set • Open the data set • You can do this by using the pull down menu • You should have 2082 observations, 103 variables • no duplicate controls • no negative lprice, unitsf, lot

4. Logging your work • log using “your log file name” • This will keep track of everything you do and store results • set more off • this will cause results to not pause every few lines - with a log file recording everything you can always view results there

5. House values • Different value of a bedroom (bathroom, dining room, etc.) by city (region)? • Yes: estimate separate model for each CMSA • No: • everything is the same: one model • average value higher, contribution of a room the same: different intercepts

6. Everything is different • Sort cmsa • tabu cmsa • what do you learn? • By cmsa: reg lprice explanatory variables • test for equality of coefficients

7. Intercept is different • yit = xitb + vt + eit • i is household i, t is CMSA t • Is vt correlated with xit? • Yes, then fixed effects estimation. • Xtreg lprice …, i(cmsa) fe • No, then random effects estimation. • Xtreg lprice …, i(cmsa) • Unsure, do random effects, test using xthaus

8. Model specification • Functional form • logs • non-parametric • Correct variables • age • commute time • neighborhood

9. More Variables