Use the data in PresVote.dta to answer the between changes in real disposal income and presidential election results. The following table describes the variables. following questions about the relationship ariable name year rdi4 tote demcand repeand Year of election Change in real disposable income since previous election Percent of two-party vote received by the incumbent president's party Name of the Democratic candidate Name of the Republican candidate Equals 1 ifincumbent is running for reelection and 0 ifn Provide STATA output for all parts of this question (a) Create a scatterplot like Figure 3.1 (Real Econometrics page 46) (b) Estimate an OLS regression in which the vote share of the incumbent party is regressed on change in real disposal income. Report the estimated regression equation, and interpret the (c) What is the fitted value and the residual value for 1996? Hint: Use the predict command (d) Estimate the OLS regression only on years in which the variable Reelection equals 1- that (e) Estimate an OLS regression only on years in which the variable Reelection equals 0-that is, coefficients. followed by the list command is, years in which an incumbent resident is running for reelection. Interpret the coefficients. years in which an incumbent president is not running for reelection. Interpret the coefficients and discuss the substantive implications of differences from the model with incumbents only id year rdi4 demcand rep cand reelection Dewey 1952 1.47073 44.6231 Stevenson Eisenhower 1956 2.97846 57.7465 Stevenson Eisenhower Nixon Johnson Goldwater Nixon Nixon Ford Reagan Reagar Bush Bush Dole Bush Bush McCain Romney 1948 3.4509952.3256 Truman 1960 57456249.8992 Kennedy 1964 5.57557 61.3454 1976 2.93891 48.9297 1980 -.201277 19846.03529 59.1549 1988 3.31798 53.9394 1992 2.1304646.5174 1996 2000 3.8547250.2649 2004 2008 -.5969546.3489 2012 2.17077 1968 3.4601449.5935Humphrey 1972 3.65583 61.8126 McGovern Carter Carter Mondale Dukakis Clinton Clinton Gore Kerry Obama Obama 44.711 10 10 12 n 13 14 15 16 17 12 13 14 15 16 17 2.075454.8955 2.4355 51.2441 51.428 Vars: 7 Order Data Use the data in PresVote.dta to answer the between changes in real disposal income and presidential election results. The following table describes the variables. following questions about the relationship ariable name year rdi4 tote demcand repeand Year of election Change in real disposable income since previous election Percent of two-party vote received by the incumbent president's party Name of the Democratic candidate Name of the Republican candidate Equals 1 ifincumbent is running for reelection and 0 ifn Provide STATA output for all parts of this question (a) Create a scatterplot like Figure 3.1 (Real Econometrics page 46) (b) Estimate an OLS regression in which the vote share of the incumbent party is regressed on change in real disposal income. Report the estimated regression equation, and interpret the (c) What is the fitted value and the residual value for 1996? Hint: Use the predict command (d) Estimate the OLS regression only on years in which the variable Reelection equals 1- that (e) Estimate an OLS regression only on years in which the variable Reelection equals 0-that is, coefficients. followed by the list command is, years in which an incumbent resident is running for reelection. Interpret the coefficients. years in which an incumbent president is not running for reelection. Interpret the coefficients and discuss the substantive implications of differences from the model with incumbents only id year rdi4 demcand rep cand reelection Dewey 1952 1.47073 44.6231 Stevenson Eisenhower 1956 2.97846 57.7465 Stevenson Eisenhower Nixon Johnson Goldwater Nixon Nixon Ford Reagan Reagar Bush Bush Dole Bush Bush McCain Romney 1948 3.4509952.3256 Truman 1960 57456249.8992 Kennedy 1964 5.57557 61.3454 1976 2.93891 48.9297 1980 -.201277 19846.03529 59.1549 1988 3.31798 53.9394 1992 2.1304646.5174 1996 2000 3.8547250.2649 2004 2008 -.5969546.3489 2012 2.17077 1968 3.4601449.5935Humphrey 1972 3.65583 61.8126 McGovern Carter Carter Mondale Dukakis Clinton Clinton Gore Kerry Obama Obama 44.711 10 10 12 n 13 14 15 16 17 12 13 14 15 16 17 2.075454.8955 2.4355 51.2441 51.428 Vars: 7 Order Data
