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Describe to see the description of the variables.
1. Use the data in vote1.dta to answer this question.
(a) Estimate the following model using OLS
votea = β1 + β2prtya + β3democa + β4lexpa + β5lexpb + e.
Report the results.(b) Obtain e^ and y^ and plot |e^| vs. y^.(c) Estimate the model again with White robust standard errors and report the results.
2. Use the data in phillips2.dta for this question. We have the following Phillips Curve model:
inft = β1 + β2unemt + et.
(a) Estimate the above model using OLS and report the regression.(b) Plot e^t vs. e^t-1.
(c) Estimate the model again with Newey-West robust standard errors and report the results.
Attachment:- data files.rar
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