Using the country-level data on wine consumption and deaths (wine.xlsx), answer
ID: 1158139 • Letter: U
Question
Using the country-level data on wine consumption and deaths (wine.xlsx), answer the following questions. Just write the results of the regression in by hand and explain.
alcohol liters alcohol from wine, per capita
deaths deaths per 100,000
heart heart disease deaths per 100,000
liver liver disease deaths per 100,000
a. What is the effect of wine consumption on overall deaths?
b. What is the effect of wine consumption on heart disease deaths?
c. What is the effect of wine consumption on liver disease deaths?
d. (Find the elasticity of liver disease deaths with respect to alcohol consumption.
country alcohol deaths heart liver Australia 2.5 785 211 15.3 Austria 3.9 863 167 45.6 Belg/Lux 2.9 883 131 20.7 Canada 2.4 793 191 16.4 Denmark 2.9 971 220 23.9 Finland 0.8 970 297 19 France 9.1 751 71 37.9 Iceland 0.8 743 211 11.2 Ireland 0.7 1000 300 6.5 Israel 0.6 834 183 13.7 Italy 7.9 775 107 42.2 Japan 1.5 680 36 23.2 Netherlands 1.8 773 167 9.2 New Zealand 1.9 916 266 7.7 Norway 0.8 806 227 12.2 Spain 6.5 724 86 36.4 Sweden 1.6 743 207 11.2 Switzerland 5.8 693 115 20.3 UK 1.3 941 285 10.3 US 1.2 926 199 22.1 West Germany 2.7 861 172 36.7Explanation / Answer
a. Below are the regression results when death is regressed on wine consumption:
We notice a negative coefficient of alcohol which implies that wine consumption has a negative effect on overall deaths at 10% level of significance
b.Below are the regression results when heart disease deaths is regressed on wine consumption:
Again we notice a negative coefficient of alcohol which implies that wine consumption has a negative effect on heart disease deaths at 1% level of significance
c. Below are the regression results when liver death is regressed on wine consumption:
The results change here. We observe that liver deaths are positively associated with wine consumption.
d. For this part, we will transform the variable - liver to ln_liver and alcohol to ln_alcohol. The coefficient will then give us elasticity of liver disease deaths with respect to alcohol consumption.
The elasticity of liver disease deaths with respect to alcohol consumption is 0.50. That is, if alcohol consumption increases by 1% then liver deaths increase by 0.50%.
Dependent var: Death Coefficients Standard Error t Stat P-value Intercept 876.2050247 30.4681607 28.75805446 3.97489E-17 alcohol -16.26351543 8.198924476 -1.983615714 0.061938924Related Questions
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