Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 7

In Example we added the quadratic terms pcnv2, ptime862, and inc862 to a linear model for narr86.

i) Use the data in CRIME1.RAW to add these same terms to the Poisson regression in Example

(ii) Compute the estimate of a2 given by Is there evidence of overdispersion? How should the Poisson MLE standard errors be adjusted?

(iii) Use the results from parts (i) and (ii) and Table to compute the quasi-likelihood ratio statistic for joint significance of the three quadratic terms. What do you conclude?

Determinants of Number of Arrests for Young Men

Step 1 of 4

(i)

Estimating the Poisson regression model:

The dependent variable is modeled on

The result is: