PART 1 (Questions 1-7) Pollution and Economic Development. Grossman and Krueger (1995) were interested in finding the re

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Part 1 Questions 1 7 Pollution And Economic Development Grossman And Krueger 1995 Were Interested In Finding The Re 1 (30.08 KiB) Viewed 29 times

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PART 1 (Questions 1-7) Pollution and Economic Development. Grossman and Krueger (1995) were interested in finding the relationship between a country's per capita income and its mean annual pollution levels in air and water sources. Suppose you are a researcher trying to replicate their findings and you collect data from different pollution monitoring sites in cities across multiple countries to estimate the following equation: Y=B+B GDP+8₂GDP +8₂ COAST+8, DESERT +ACENTER+ BRESID+BIND+B POPDEN + u where Y represents the mean pollution concentration (measured in micrograms per liter). GDP is the per capita GDP of the country where each site is located, COAST. DESERT, and CENTER are dummy variables that indicate the location of each site.. COAST takes the value of 1 the site is in a coastal city (0 otherwise). DESERT is 1 if the site is in a desert (0 otherwise). CENTER takes the value of 1 in sites in the center of a city (0 otherwise). RESID and IND are dummy valables that indicate whether a site is located in a residential area or an industrial area: RESID takes the value 1 if the site is in a residential area (0 otherwise), and IND takes the value 1 if the site is in an industrial area (0 otherwise). POPDEN is the population density (measured in persons per square mile) of the city where the site is located.

Question 1 In addition to exploiting the variation of pollution levels across cities of different countries, you suspect that over time, technological advancement allows production processes to become more efficient and result in less pollution. What kind of data would you need to collect to estimate the above equation for different monitoring sites over multiple years? Time-series 2 pts O Cross-section O Panel