Question

Levitt (1997) estimates the relation between violent crime and number of police officers. He estimates: log(\crime) = βˆ 0 − 1.39 log(off icers) + 0.04 %femaleHH where log(crime) is the logged number of violent crimes per capita in a city, log(off icers) is the logged number of police officers per capita in a city. (a) Interpret the coefficient on log(off icers) (assuming we have ”good” estimates). (b) Interpret the coefficient on %femaleHH (assuming we have ”good” estimates). (c) Suppose that R2 = 0.212. Interpret this result (1-2 sentences)

Answer 1

& The 1.39 Coefficient of log(officers tation is that for a unit increase for in the ice officers per capita interpretation is that togged number of * There would be a the logged number would be a number o 1.39 units increases in of violent crimes per for a unit increase percent Capita & In a city keeping all the other variablen constant. 6. & The 0.04 Coefficient of the s. female variable means that for a unit increase of house holds at are of The city that are female heade female headed there would increase in the logged number of violent Crimes per capita all the other variables constant. C. R = 0.212 the intepreation is that 21.24. x. The total variation in the dependent variable that variation in the des violent crimes. & The regression equation rest still the unexpli -ned variation in the dependent variable..