fiscal: This is the size of the stimulus package the as percentage of GDP countries have adopted as a response to the pandemic.

totalcases: The number of total COVID 19 cases, by sometime in April 2020. Infection rate: Total cases divided by population

Medage: Median age of population in years

hospitalbeds: Number of hospital beds per 1000 people

gdppercapita2018: Real GDP per-capita in constant USD in 2018

democracy: An institutional quality variable that takes a higher value if a country is more democratic.

presidential: A dummy variable that takes the value of 1 for presidential regimes and 0 for parliamentary regimes. Answer the following questions:

(a) Regress the fiscal variable on democracy. (Use excel for this and particularly focus on OLS.xlsx that we have worked on together in class, when we still had in-person classes) Calculate the estimated coefficient of democracy. Interpret what it means.

(b) Repeat the above exercise with presidential on the right-hand side of the regression equation. Interpret the coefficient. Does your interpretation change because the variable presidential is a dummy?

(c) Now, run a regression where you regress the variable fiscal on all the other variables (For this use STATA and the reg command. You basically need to type the following on STATE: "reg fiscal totalcases infectionrate medage gdppercapita2018 hospitalbeds democracy presidential". Interpret your results. Which variable has a significant coefficient? Which variable does not have a significant coefficient? Why?

(d) Why are the results you obtain different in parts a vs. c or b vs. c. Explain.

I will also upload the excel sheet, it will help you to answer questions