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This exercise refers to the drunk driving panel data regression summarized below. Regression Analysis of the Effect of Drunk Driving Laws on Traffic Deaths Dependent variable: traffic fatility rate (deaths per 10,000). Regressor (1) 0.42 (0.056) (2) 2 -0.68** (0.27) (3) -0.61*** (0.34) (6) -0.39 (0.32) Beer tax (7) -0.989 (0.36) 0.043 Drinking age 18 (4) -0.58 (0.38) 0.033 (0.076) -0.024 (0.057) 0.033 (0.056) (5) -0.75" (0.34) -0.014 (0.082) -0.084 (0.071) -0.109" (0.056) (0.101) Drinking age 19 -0.062 (0.104) -0.112 (0.125) Drinking age 20 0.081 (0.111) 0.012 (0.011) Drinking age Mandatory jail or community service? Average vehicle miles per driver Unemployment rate Real income per capita (logarithm) Years 0.039 (0.116) 0.007 (0.005) -0.062 (0.012) 1.84* * (0.62) -0.004 (0.025) 0.037 (0.105) 0.008 (0.006) -0.063* (0.011) 1.87* (0.66) 0.092 (0.166) 0.125 (0.052) -0.092 (0.021) 1.01 (0.68) 1982 & 1988 only yes yes 1982-88 1982-88 1982-88 1982-88 1982-88 1982-88 no State Effects? Time effects? Clustered standard errors? yes no yes yes yes yes yes yes yes yes no no yes yes yes yes yes yes 1982-88 1982 & 1999 Unemployment rate (0.012) (0.011) (0.021) Real income per capita 1.84* 1.87* 1.01 (logarithm) (0.62) (0.68) (0.88) Years 1988 1982-88 1982-88 1982-88 1982-88 1982-88 only Stale Effects? no yes yes yes yes yes yos Tirre effects? no yes yes yes yes yes Clustered standard errors? yes yes yes yes yes yes F-Statistics and p-values Testing Exclusion of Groups of Variables Time effects=0 4.89 10.77 3.48 0 10.76 37.26 (0.002) (

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