Use the panel data set crime.dta for this question. It is a panel of 90 entities

Question

Use the panel data set crime.dta for this question. It is a panel of 90 entities (counties in North Carolina) from 1981 to 1987. It contains the following data.
county = county identifier
year = year from 1981 to 1987
crmrte = crimes committed per person
prbarr = 'probability' of arrest
prbconv ='probability' of conviction
prbpris = 'probability' of prison sentence
polpc = police per capita
taxpc = tax revenue per capita
(a) Summarize your data and report the summary statistics table. What is the mean and standard deviation of the crime rate in North Carolina in each year? Is the data set a balanced panel?
(b) Estimate the effect on the crime rate by regressing crmrte on prbarr, prbconv, prbpris, polpc, and taxpc with a simple pooled OLS. Does the estimated regression suggest that increased probability of arrest reduces the crime rate?
(c) Do the results change when you add county fixed effects?
(d) Do the results change when you add time (year) fixed effects plus county fixed effects?
(e) Which regression specification - (b), (c), or (d) - is most reliable? Briefly explain why.

sorry can't post .dta here, please help me to figure out the commands for each question. Thank you!

Explanation / Answer

you need to run the following commands in STATA.

xtset county year

xtreg cmrte prbarr prbconv prbpris polpc taxpc, fe

then check for the folowing questions using the results you get .

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