Solve one of problems 1, 2, or 3 from Lecture 2 (PDF) and one of problems 4 or 5 from Lecture 2. You can use any econometric/statistical software you like. The data sets are posted below. Please provide detailed write-ups: explain theoretical foundations of your analysis and provide step-by-step explanation for your empirical analysis. Think that you are writing an empirical portion of your paper and you are trying to communicate the results to your colleagues and referees. We also provide R-code below (and a link to Stata code is also mentioned): you are welcome to take a look at the code, but you are not allowed to copy & paste the code—please write your own code. You can work in groups to discuss the homework, but all the write-ups and all the coding should be individual.
Stata code for Weak-Id robust inference is available from Christian Hansen’s website. You can take a look, but write your own code. We also provide R-code below: you are welcome to take a look at the code, but you are not allowed to copy and paste the code—please write your own code (to learn!)