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Democracy, which contains a panel data set from 1960, 1965. . .. . 2000. A detailed description is given in Income_Democracy_ Description, available on the

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Democracy, which contains a panel data set from 1960, 1965. . .. . 2000. A detailed description is given in Income_Democracy_ Description, available on the website.*The data set contains an index of politi- cal freedom/democracy for each country in each year, together with data on each country's income and various demographic controls. (The income and qnaw ord To demographic controls are lagged five years relative to the democracy index to to ewal anonne allow time for democracy to adjust to changes in these variables.) bole\\moo, bot a. Is the data set a balanced panel? Explain. In laning boob. The index of political freedom/democracy is labeled Dem_ind. i. What are the minimum and maximum values of Dem_ind in the data set? What are the mean and standard deviation of Dem_ind in the data set? What are the 10th, 25th, 50th, 75th, and 90th percentiles of ngon : (S) bos llore its distribution? noizes 1.booidg. 404 ji. What is the value of Dem_ind for the United States in 2000? Averaged over all years in the data set? to airdial () 40jii. What is the value of Dem_ind for Libya in 2000? Averaged over all years in the data set? ognede () noliv. List five countries with an average value of Dem_ind greater than am en (1) nowrests. 0.95; less than 0.10; and between 0.3 and 0.7. a blow-los pa c. The logarithm of per capita income is labeled Log_GDPPC. Regress Dem_ind on Log_GDPPC. Use standard errors that are clustered by vidisuniq country. i. How large is the estimated coefficient on Log_GDPPC? Is the coefficient statistically significant? ii. If per capita income in a country increases by 20%, by how much is Dem_ind predicted to increase? What is a 95% confidence interval for the prediction? Is the predicted increase in Dem_ind large or small? (Explain what you mean by large or small.)

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