Write a short essay structure (introduction, body, conclusion). Write in your own words (it is not okay just to ‘change the words of someone else a little bit’)
of what the econometric results on the next slide tell us. Suppose a researcher uses survey microdata and estimates the following model of the correlates of life satisfaction in Canada:
LS = a + b1 Poor + b2 Rich + b3 Atlantic + b4 Female + u
|Dummy = 1 if Poor||-1.500||0.15|
|Dummy = 1 if Rich||0.500||0.10|
|Dummy=1 if Residence in Atlantic||0.400||0.10|
|Dummy=1 if Female||0.250||0.250|
|R-squared = 0.2|
LS is the respondent’s rating of life satisfaction on a scale from 0 to 10
Poor is a dummy variable = 1 if household income is less than 50% median equivalent income; = 0 otherwise
Rich is a dummy variable =1 if household income is in the top quintile of the equivalent income distribution; = 0 otherwise.
Points to include:
Overall, if you were to tell a policy maker the ‘story’ indicated by the results, what would it be?
Write in your own words (it is not okay just to ‘change the words of someone else a little bit’)
You can still use in-text citation and include a bibliography if you make use of any reference materials in writing your essay
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