2.5 Replication of econometric studies  (Page 10/10)

. recode hsat (0/2 = 0) (3/5 = 1) (6/8 = 2) (9 = 3) (10 = 4), generate(hsatnew)

Figure 7 shows the histogram of the new variable.

1. Create a table of summary statistics for (1) health status, (2) age, (3) household income, (4) years of education, (5) marital status, and (6) number of children by year and sex. (You might want to use the command .bysort year female, list of variables ).
2. Estimate an ordered probit regression for 1988 for health status (the new variable) using age, income, education, married, and kids as the explanatory variables. Here you might want to used the command: .oprobit hsatnew age hninc educ married hhkids if year==1988 .
3. Use the predict newvariable, xb command to calculate the predicted mean values for each individual for the 1988 observations. Compare this histogram to one using the 1988 regression parameters to estimate xb for all years.
4. Estimate the ordered probit model for all of the years in the sample and put the results into a table like Table 11 . (Here you might want to make use of the command: .bysort year: oprobit hsatnew varlist)

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