Economics Question (Stata log file)

Department of Ag and Resource Economics UC Davis

ARE 106 Homework 1

Spring 2021

DUE: 11:59pm Friday, April 16 (i.e., before class)

Late homeworks will automatically be given a score of zero.

Completing your homework requires two submissions on Canvas. First, you must answer the
questions in the quiz named “Homework 1 (Answer questions)”. Second, you must upload your
Stata log file in the assignment named “Homework 1 (Upload Stata log file)”.

Here are three models for the median starting salary of law school graduates in 1985.

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0 1

0 1 2

0 1 2 3 4

1. log( )
2. log( )
3. log( ) log(cos )

i i i

i i i i

i i i i i

salary b b GPA e
salary b b GPA b LSAT e
salary b b GPA b LSAT b rank b t e

Each observation i represents a school. You can read the data from the internet directly into Stata
using the command:
“use https://files.asmith.ucdavis.edu/lawsch85_2021.dta”

The variables in the dataset are:
1. rank law school ranking
2. salary median starting salary
3. cost law school cost
4. LSAT median LSAT score
5. GPA median college GPA
6. libvol no. volumes in lib., 1000s
7. faculty no. of faculty
8. age age of law sch., years
9. clsize size of entering class
10. north =1 if law sch in north
11. south =1 if law sch in south
12. east =1 if law sch in east
13. west =1 if law sch in west
14. lsalary log(salary)=log of median starting salary
15. studfac student-faculty ratio
16. top10 =1 if ranked in top 10
17. r11_25 =1 if ranked 11-25
18. r26_40 =1 if ranked 26-40
19. r41_60 =1 if ranked 41-60
20. llibvol log(libvol)
21. lcost log(cost)