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If you had to plan this study, what other variables would you collect data on and include in your model: Environmental Economics Essay, UCL, UK

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If you had to plan this study, what other variables would you collect data on and include in your model: Environmental Economics Essay, UCL, UK

UniversityUniversity College London (UCL)
SubjectEnvironmental Economics

Question 1

  • If you had to plan this study, what other variables would you collect data on and include in your model?
  • What other functional forms or model specifications would you try, and why? Please implement at least one of these and present the results below, and discuss whether it has improved the model.
  • Why not just do a simple correlation between price and nox? Why do we need to run a regression?

Question 2

Before you run the regression, what are your expectations regarding the signs of the coefficients for the following variables? Also, explain briefly why.

  • CHARLES
  • PTRATIO
  • NOX

Question 3

  • Calculate the correlation between the independent variables and copy the results below.
  • Comment briefly on whether the calculated correlation of LSTAT with each of these variables makes logical sense or not, and why: CRIME, INDUS, CHARLES, NOX, ROOMS, AGE

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