We have used mother’s education as an instrument for cigarette smoking. However, this is a very poor choice for an instrument! Explain why. Can you think of a more suitable instrument?

We have used mother’s education as an instrument for cigarette smoking. However, this is a very poor choice for an instrument! Explain why. Can you think of a more suitable instrument?

Replication Exercise
ECONOMICS 191
Fall 2018
Due: October 24
In this exercise, you will demonstrate a basic understanding of how to use econometrics
in practice with software such as Stata or R. We will walk you through the commands for
Stata, but if you prefer to use R, feel free to do so.
We will use a random sample of the 1988 National Maternal and Infant Health Survey,
collected by the U.S. Department of Health and Human Services, and presented in Jeff
Wooldridge’s Introductory Econometrics textbook, 3rd edition. This survey was one of
the first large-scale data collections to examine the correlation between maternal smoking
and infant weight at birth. Though the research design cannot be interpreted as causal,
the large correlations between maternal smoking and low infant birth among women
between the ages of 15 and 49 who had a pregnancy in 1988 spurred a tidal wave of
literature on the subject that continues to progress.
Please hand in, via bCourses, your log file, do file, and a concise write-up of
your findings, answering all questions below.
Note that many of the commands that we ask you to run in Stata are also available in
Stata’s dropdown menu. Please do not use it. Instead, write each command in your do file.
1 Setup
1. Download the dataset birthweight_sample.dta from the “Replication Exercise” folder
under the “Files” tab on bcourses. (This will not show up on your Stata log or your
do file.)
2. Open Stata and create a new do file by clicking on the “New Do File Editor” Icon.
3. Open birthweight_sample.dta in Stata using the “use” command.
2 Descriptive Statistics
1. Locate the data entry error in the dataset. Briefly describe the error in your
write-up. (Stata hint: use the summarize command sum to search for the error.)
2. Replace the incorrect data entry with the missing entry symbol. (Stata hint: missing
values are coded with a . in Stata. Use replace variablename = . if

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