Use globaled.dta, the data set on education and growth from Hanushek and Woessmann (2012) for this question. The variables are given in Table 5.14.

(a) Use standardized variables to assess whether the effect of test scores on economic growth is larger than the effect of years in school. At this point, simply compare the different effects in a meaningful way. We'll do statistical tests next. The dependent variable is average annual GDP growth per year. For all parts of this exercise, control for average test scores, average years of schooling between 1960 and 2000, and GDP per capita in 1960.

(b) Now conduct a statistical test of whether the (appropriately comparable) effects of test scores and years in school on economic growth are different.

(c) Now add controls for openness of economy and security of property rights. Which matters more: test scores or property rights? Use appropriate statistical evidence in your answer.

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TABLE 5.14 Variables for Global Education Data Variable name code ypcgr testavg Description Country name Country code Average annual growth rate (GDP per capita), 1960-2000 Average combined math and science standardized test scores, 1964-2003 Average years of schooling, 1960 2000 GDP per capita in 1960 Region edavg ypc 60 region open proprts Security of property rights scale Openness of the economy scale