Question

ccode	country	lrgdppc	proc_exp	malaria	lsettlr_mort
AGO	Angola	7.77	5.36	1	5.63479
ARG	Argentina	9.13	6.39	0	4.232656
AUS	Australia	9.9	9.32	0	2.145931
BFA	Burkina Faso	6.85	4.45	1	5.63479
BGD	Bangladesh	6.88	5.14	0.158	4.268438
BOL	Bolivia	7.93	5.64	0.00528	4.26268
BRA	Brazil	8.73	7.91	0.1935	4.26268
CAN	Canada	9.99	9.73	0	2.778819
CHL	Chile	9.34	7.82	0	4.232656
CIV	Cote d'Ivoire	7.44	7	1	6.504288
CMR	Cameroon	7.5	6.45	1	5.63479
COG	Congo	7.42	4.68	1	5.480639
COL	Colombia	8.81	7.32	0.2499	4.26268
CRI	Costa Rica	8.79	7.05	0	4.35799
DOM	Dominican Re	8.36	6.18	0	4.867534
DZA	Algeria	8.39	6.5	0	4.35927
ECU	Ecuador	8.47	6.55	0.13725	4.26268
EGY	Egypt	7.95	6.77	0	4.216562
ETH	Ethiopia	6.11	5.73	0.75	3.258097
GAB	Gabon	8.9	7.82	1	5.63479
GHA	Ghana	7.37	6.27	1	6.504288
GIN	Guinea	7.49	6.55	1	6.180017
GMB	Gambia	7.27	8.27	1	7.293018
GTM	Guatemala	8.29	5.14	0.012	4.26268
GUY	Guyana	7.9	5.89	0	3.471345
HKG	Hong Kong	10.05	8.14	0	2.701361
HND	Honduras	7.69	5.32	0.0108	4.35799
HTI	Haiti	7.15	3.73	1	4.867534
IDN	Indonesia	7.33	7.59	0.42594	5.135798
IND	India	7.33	8.27	0.28107	3.884241
JAM	Jamaica	8.19	7.09	0	4.867534
KEN	Kenya	7.06	6.05	0.91	4.976734
LKA	Sri Lanka	7.73	6.05	0.2	4.245634
MAR	Morocco	8.04	7.09	0	4.35927
MDG	Madagascar	6.84	4.45	1	6.284209
MEX	Mexico	8.94	7.5	0.00013	4.26268
MLI	Mali	6.57	4	0.62	7.986165
MLT	Malta	9.43	7.23	0	2.791165
MYS	Malaysia	8.89	7.95	0.46662	2.873565
NER	Niger	6.73	5	0.66	5.991465
NGA	Nigeria	6.81	5.55	1	7.6029
NIC	Nicaragua	7.54	5.23	0.044	5.095589
NZL	New Zealand	9.76	9.73	0	2.145931
PAK	Pakistan	7.35	6.05	0.52671	3.610648
PAN	Panama	8.84	5.91	0.138	5.095589
PER	Peru	8.4	5.77	0.00205	4.26268
PRY	Paraguay	8.21	6.95	0.0051	4.35799
SDN	Sudan	7.31	4	0.81	4.479607
SEN	Senegal	7.4	6	1	5.103883
SGP	Singapore	10.15	9.32	0	2.873565
SLE	Sierra Leone	6.25	5.82	1	6.180017
SLV	El Salvador	7.95	5	0	4.35799
TGO	Togo	7.22	6.91	1	6.504288
TTO	Trinidad and Tobago	8.77	7.45	0	4.442651
TUN	Tunisia	8.48	6.45	0	4.143135
TZA	Tanzania	6.25	6.64	1	4.976734
UGA	Uganda	6.97	4.45	1	5.63479
URY	Uruguary	9.03	7	0	4.26268
USA	USA	10.22	10	0	2.70805
VEN	Venezuela	9.07	7.14	0.0704	4.35799
VNM	Vietnam	7.28	6.41	0.74	4.941642
ZAF	South Africa	8.89	6.86	0	2.74084
ZAR	Zaire	6.87	3.5	1	5.480639

(1a)Perform the following regression:

The input Y-range will be the column containing the average protection from expropriation risk from the 'Data' sheet. The input X-range will consist of the single column -- settler mortality. Save the output table in a new worksheet and name it 'first_stage1'.

(1b)What is the sign of the effect of historic European settler mortality on the average protection from expropriation risk measure? Does the estimated sign conform to AJR's argument on the relationship between colonial history and modern institutions?

(1c)Is the coefficient on settler mortality statistically significant? What is the importance of statistical significance for inference (viz., what does it meanfor a coefficient to have a t-statistic > 2)?

(1d)What is the R-squared of the first stage regression? Does settler mortality explain much of the variation in the protection from expropriation measure?

(1e) Taken together, do you find that the evidence supports or contradicts (or neither) AJR's argument regarding the relationship between current institutions and colonial history?

Answer 1

1 SUMMARY OUTPUT Regression Statistics 4 Multiple R 5 R Square 6 Adjusted R Square 7 Standard Error 8 Observations 0.523225473 0.273764896 0.261859402 1.267482405 63 10 ANOVA MS 36.94147524 22.99484 1.606511647 Significance F 36.94147524 97.99721047 134.9386857 12 Regression 13 Residual 14 Total 15 16 17 Intercept 18 Isettlr_mort 19 20 1 61 62 1.08379E-05 Coefficients Standard Error P-value r95% Lower 95.0% Uer 95.0% t Stat U Lower 95% 9.343884262 0.614084282 0.127518186 15.21596389 1.95E-22 8.115946859 10.57182166 8.115946859 10.57182166 0.611487108 -4.795293328 1.08E-05 0.866475478-0.356498737-0.866475478-0.356498737

1b)

H₀: µ₁=µ₂=-----=µ_n

H₁: At least one is significantly different

1c) Yes, the coefficient of the mortality is statistically significant as the p-value<0.05 which gives us the significant result.

we have test-statistic in negative as it shows the value lies in the normality curve. and the sigificance of the test we have conducted on our data.

1d) R²= 0.274

This shows that 27.4% of variability is explained the given data.

1e) No, we don't have the sufficient evidence to support the AJR's argument regarding the relationship between current institutions and colonial history.