https://github.com/ccolonescu/POE5Rdata/tree/master/datar

find a data in this website and look picute do part a and b (use r studio)

1'. 11.25 Reconsider Example 11.2 on the supply and demand for sh at the Fulton Fish Market. The data are in the le ltonsh. In this exercise, we explore the behavior of the market on days in which changes in sh inventories are lar relative to those days on which inventory changes are small. Graddy and Kennedy (2006} anticipate that prices and quantities will demonstrate simultaneity on days with large changes in inventories, as these are days when sellers are demonstrating their responsiveness to prices. On days when inventory changes are small. the anticipation is that feedback between prices and quantities is broken, and sirnultaneity is no longer an issue. a. Use the subset of data for days in which inventory change is large, as indicated by the variable CHANGE = 1. Estimate the reducedform equation (1 1.16) and test the signicance of STORM . Discuss the importance of this test for the purpose of estimating the demand equation by two-stage least squares. 1). Obtain the OLE residuals :52 from the reducedform equation estimated in (a). lCarry out a Hausman test. as discussed in Section 10.4.1, for the endogeneity of 1n(PRICE} by adding $32 as an extra variable to the demand equation in (11.13), estimating the resulting model by OLS, and testing the signicance of {3,2 using a standard Itest. If {1,2 is a signicant variable in this augmented regression then we may conclude that ln{PRICE) is endogenous. Based on this test, what do you conclude? Estimate the demand equation using twostage least squares and OLS using the data when CHANGE : 1, and discuss these estimates. Compare them to the estimates in Table 11.5. Estimate the reducedform equation (11.16) for the data when CHANGE : 0. Compare these reducedfonn estimates to those in (a) and those in Table 11.4b. Obtain the OLS residuals in from the reducedfont] equation estimated in (d). Carry out a Hausman test for the endogeneity of ln(PRI CE ). as described in part (b). Based on this test. what do you conclude? Obtain the twostage least squares and the OLS estimates for the demand equation for the data when CHANGE : 0. lCompare these estimates to each other and to the estimates in to). Discuss the relationships between them. 11.5 Exercises