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1. Run the following two regression models: rprice1981 = Bo + B1 nearinc + e rprice 1978 = do + 61 nearinc + u Report

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1. Run the following two regression models: rprice1981 = Bo + B1 nearinc + e rprice 1978 = do + 61 nearinc + u Report and interpret your results. 2. Calculate the difference-in-difference estimator using B1 and 61. Hint: You will need to use scalar variables to access regression coefficient results from the _b/] array. Run a regression, and run display b[cons] in STATA. Type help_b in STATA to learn more. 3. Estimate the model: rprice = Bo + B1 nearinc + 2 y81 + 8 (y81 . nearinc) +e Report and interpret your results. 4. Add the explanatory variables age, age, rooms, baths, land, and area. Estimate the new model. Report and interpret your results

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