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The question does not state the convention.","convention":"classical (homoskedastic) OLS errors, n - k","never_required":false,"stated_in_question":false},"target":"ex13_3_rprice","trap_tools":[]},"question":"Wooldridge, Introductory Econometrics, Example 13.3 (the effect of a garbage incinerator's location on housing prices, with the data of Kiel and McClain 1995 on house sales in North Andover, Massachusetts, in 1978, before any rumours of the incinerator, and in 1981, when its construction began): pooling the two years, estimate by ordinary least squares a regression of the real house price (in 1978 dollars) on a dummy for 1981, a dummy for houses near the incinerator site, and the interaction of the two dummies. Report the coefficient on the interaction, the difference-in-differences estimate of the incinerator's effect on the price of nearby houses.","requires":[],"runner":null,"sources":["kiel_mcclain_1995.ex13_3_rprice.paper","kiel_mcclain_1995.ex13_3_rprice.software"],"split":"public","suite":"paper_repro","tags":["paper_repro","kiel_mcclain_1995","did"],"target":"agent","tool":null,"truth":"Wooldridge, J. M. (2019). Introductory Econometrics: A Modern Approach, 7th ed., Example 13.3, on the data of Kiel, K. A. and McClain, K. T. (1995), House Prices during Siting Decision Stages: The Case of an Incinerator from Rumor through Operation, Journal of Environmental Economics and Management 28(2): 241-255. A textbook example; the printed output was read from its reproduction in Heiss (2020), Using R for Introductory Econometrics, 2nd ed. Wooldridge, Introductory Econometrics, Example 13.3, the pooled 1978-1981 regression of the real house price on y81, nearinc and y81\u00b7nearinc: the coefficient on the interaction (source kiel_mcclain_1995.ex13_3_rprice.paper); software reference kiel_mcclain_1995.ex13_3_rprice.software: statsmodels 0.15.0: the reference specification of kiel_mcclain_1995 ex13_3_rprice (infer.ols, figure 'coef.y81nrinc') on an independent code path"}