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Use murder.csv to estimate the effect of capital punishment on crime rates. This data set is panel data at the state level, from 1987, 1990
Use murder.csv to estimate the effect of capital punishment on crime rates. This data set is panel data at the state level, from 1987, 1990 and 1993. mrdrtes,t is the murder rate in state s in year t. execs,t is the total number of executions in the past three years, and unems,t the unemployment rate in state s in year t. (15pts) Estimate a pooled regression using OLS (i.e. using all three years of data, but don't explicitly accounting for the panel structure at the state level). Regress the murder rate on the number of executions and controlling for the unemployment rate and year dummies. mrdrtes,t=0 1execs,t 2unems,t 3YR90t 4YR93t st (Recall that in this pooled specification, it contains unobserved time invariant state level characteristics as and unobserved time-variant characteristics, s,t (where st=as st). Interpret the coefficient estimates on exec, unem and the year dummies
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