ex

q1.do

/*

APPLIED ECONOMETRICS FOR SPATIAL ECONOMICS
Empirical Assignement II
Deadline: 07 Oct 2022

Group 6

*/

*Cleares the workspace 
clear

*Set working directory
cd 
*Import dataset "VOTTdata.xlsx" from personal workspace
import excel 

*install necessary packages


***********************************************
*************** Questions  ********************
***********************************************

*************** Question 1 ********************
//1) --> See Word document

//2)
*Showing description
sum BaseTime income
sum BaseTime income if gender == 1 //Male
sum BaseTime income if gender == 2 //Female

*Predicted probabilities for probit model (I already run logit and it gave the same result
replace y=y-1 //As STATA cannot understand 1;2, we replace it with 0;1
probit y BaseTime income gender //Probit regression models the probability that Y=1
predict y_probit, pr //predict values are probabilities that y = 1 for i-th obs
sort y

*Showing sample probabilities 
list y y_probit in 1/10 //slowest alternative is chosen
list y y_probit in 8013/8022 //fastest alternative is chosen

//3) Display dominant alternatives

*************** Question 2 ********************
//1) --> See Word document

//2)
*Create new dependent variable with outcome 0 (formely 1) and 1 (formerly 2)

//3) 
logit 

//4) --> See Word document

//5)

*************** Question 3 ********************
//1)

//2)

//3)

//4)

*************** Question 4 ********************
//1)

//2)

//3)


***** END OF QUESTIONS *******