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PLEASE USE R CODES TO WORK ON THE BELOW QUESTIONS AND PLEASE GIVE A CLEAR INTERPRETATION OF THE RESULTS The data Panel_HW4.xls records as the

PLEASE USE R CODES TO WORK ON THE BELOW QUESTIONS AND PLEASE GIVE A CLEAR INTERPRETATION OF THE RESULTS

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The data Panel_HW4.xls records as the variable outcome as the growth of crime rates (violent crimes per 1000 of population) for 2000 individual police jurisdictions in a state with 6 counties, for 5 years between 20112015. The variable incarcerations denotes the growth of incarcerations per 1000 residents. The variable cartels denotes the number of drug cartels operating in each of these police jurisdictions during a given year. a) Use the appropriate panel data methods to find if either incarcerations or the number of cartels operating in each police jurisdiction has any significant effect of the growth of violent crimes. b) In the year 2013 the local governments of only counties (counties 1 and 2) started a new experimental social programs for youth training and employment, under which youths in these counties find alternative employment and training opportunities and rather than being forced to join drug cartels. Do you think this new program had any success in reducing crimes? Use an appropriate Difference in Difference model to answer this

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