#delimit;
**Do file for Homework 7, Emprical Anlysis of Microdata, Osaka University**;
**12/11/2002**;
**by Takashi Saito**;
**Some corrections were made by Daiji Kawaguchi on Dec. 16, 2002; 
*Note: Directory path for log file and data file should be specified appropriately;

clear;
set more off;
set mem 250m;
cap log close;
log using /stataproject/micrometrics/hw7/hw7.log, replace;

*Page 336, 11.12. ;
use /stataproject/micrometrics/hw7/murder.dta, replace;

*a.;
reg cmrdrte d93 cunem cexec,cluster(id);

*c.;
ivreg cmrdrte d93 cunem (cexec=cexec_1),cluster(id);
*first stage regression;
reg cexec cexec_1 d93 cunem;
test cexec_1;

*d.;
reg cmrdrte d93 cexec cunem if id~=44,cluster(id);
ivreg cmrdrte d93 cunem (cexec=cexec_1) if id~=44,cluster(id);
reg cexec cexec_1 d93 cunem if id~=44;
test cexec_1;

*e.;
ivreg2 cmrdrte d93 cunem cexec (=cexec_1), cluster(id) gmm;
ivreg2 cmrdrte d93 cunem (cexec=cexec_1), cluster(id) gmm;

log close;
exit;