Question

only answer （h）please

2 Short Answer Solve the following problems and answer concisely. 2.1 Guns and Crime (15 points) The following regression table shows the estimation results studying the relationship between guns and crime rates in the United States (5) Violet (1) Los violent -0.000 0.05) (2) Log violent -0.2156 100 (6) Lagrobbery) -0.1276 (4) log violet) Logi t) -0.1436 0.0165) 10.12) 0.1259 0.00211 0056) 0.001) Concealed Carry law -02179 incarceration rate 0.0519 log incarceration rate 2.95 (17.68) percent male 0317 17 0.0712 income -0,0752 -35.63 Intercept 5.6678 -0,0688 DES) 4.4327 10.1456 0.4256 5.791 3911 15619 10.0723 -215.01 (106 0.3133 0.4455 0.5002 Obrations 50 The sample includes the following variables for each state in the United States where Violent: Number of violent crime incidents in a state. Robbery: Number of robbery incidents in a state Concealed carry-law: equals 1 if the state has a law that allows citizens to carry concealed weapons and to otherwise, Incarceration rate: Number of prisoners in a state (in 1.000) Percent Male: Percent of state population that is made. Income Per capita income in a state, in $1,000 (a) (2 points) Does the regression in column (1) suffer from omitted variable bias? Explain why or why not? (b) (1 points) Interpret the estimated coefficient on concealed carry-law in column (1). (e) (1 points) Interpret the coefficient on log incarceration rate in column (2) (d) (4 points) Test whether the percentage of state population that is male and the per capita income in a state are jointly significant on the 1% significance level in column (4) Define the hypothesis, test statistic, critical level and state your decision (e) (2 points) Can we compare the regression equations in columns (2) and (4)? If so, which regression provides the best fit? (1) (2 points) Can we compare the regression equations in columns (4) and (6)? If so, which regression provides the best fit? (s) (2 points) Is there statistical evidence from the regression results in column (6) that allowing citizens in a state to carry concealed weapons reduces robbery incidents? (h) (1 point)An advocacy group "For a safer America" suggests that reducing the number of prisoners in states with very high crime rates will reduce the crime rates in these states and will make America afer. Do you agree?

Answer 1

The question to be answered as pointed out in the given post is for the part (h)

In order to answer the question - whether reducing the number of prisoners in the states with very high crime rates would actually reduce the crime rate in those states and eventually lead to America being safer - it is necessary to observe the sign of the coefficient of "incarceration rate" or "log(incarceration rate)"

In various possible regression equation as listed above, it is observed that the sign of coefficient of "incarceration rate" or "log(incarceration rate)" is positive

incarceration rate 0.1259 0.0211 0.0017) 336.31 (12.72) 0.0519 log incarceration rate (17.68 3.88

That is positive 2.984 or 0.1259 or 0.0211 or 336.31 or 0.0519

Thus, the given set of regression models suggest that reducing the number of prisoners in the states with very high crime rates would actually reduce the crime rate in those states and eventually lead to America being safer.

In order to get the correct sign for the coefficient of incarceration rate or its log, the model developer should have worked on panel data and cross-sectional data based model rather than generalized OLS regression models. Possibly in panel data and cross-sectional data based model, the sign would have been negative.

I do not agree with the given statement. Higher the crime rate in states, higher would be the prisoners in the states to ensure lower crime rates in states and ensure America being safer. If criminals are not put behind the bars, they will keep on making crimes thereby increasing the level of criminal incidences. The safety & security of citizens would go for a toss. The people would not feel safe and remain panicked.