Baltagi, Song and Jung (2001) investigated the productivity of public capital in each US state’s private output, which is discussed in section 9.6.1 of the book (Empirical Example: Nested States Public Capital Productivity).
The original dataset is in Microsoft Word format (DOCX). To read it, you would need to copy it in Notepad, save as CSV , and then import it into R to find that there are data wrangling steps involved to make it usable. Alternatively, you can read the DOCX file directly in R with the readtext package and then proceed to the data wrangling.
if (!require(remotes)) install.packages("remotes")
Loading required package: remotes
Attaching package: 'remotes'
The following objects are masked from 'package:devtools':
dev_package_deps, install_bioc, install_bitbucket, install_cran,
install_deps, install_dev, install_git, install_github,
install_gitlab, install_local, install_svn, install_url,
install_version, update_packages
if (!require(baltagi)) remotes::install_github("pachadotdev/baltagi")
Loading required package: baltagi
Warning in library(package, lib.loc = lib.loc, character.only = TRUE,
logical.return = TRUE, : there is no package called 'baltagi'
Downloading GitHub repo pachadotdev/baltagi@HEAD
── R CMD build ─────────────────────────────────────────────────────────────────
* checking for file ‘/tmp/RtmpkXFS9k/remotes1ba9e038f0b58/pachadotdev-baltagi-9d4ad3c/DESCRIPTION’ ... OK
* preparing ‘baltagi’:
* checking DESCRIPTION meta-information ... OK
* checking for LF line-endings in source and make files and shell scripts
* checking for empty or unneeded directories
* building ‘baltagi_0.1.tar.gz’
Installing package into '/home/pacha/R/x86_64-pc-linux-gnu-library/4.5'
(as 'lib' is unspecified)
if (!require(plm)) install.packages("plm")
Loading required package: plm
Warning in library(package, lib.loc = lib.loc, character.only = TRUE,
logical.return = TRUE, : there is no package called 'plm'
Installing package into '/home/pacha/R/x86_64-pc-linux-gnu-library/4.5'
(as 'lib' is unspecified)
also installing the dependencies 'miscTools', 'rbibutils', 'bdsmatrix', 'collapse', 'maxLik', 'Rdpack'
library(baltagi)
library(plm)
fit <- plm(
log(gsp) ~ log(priv_cap) + log(hwy) + log(water) + log(util) + log(emp) +
unemp,
data = produc,
index = c("st_abb", "year")
)
summary(fit)
Oneway (individual) effect Within Model
Call:
plm(formula = log(gsp) ~ log(priv_cap) + log(hwy) + log(water) +
log(util) + log(emp) + unemp, data = produc, index = c("st_abb",
"year"))
Balanced Panel: n = 48, T = 17, N = 816
Residuals:
Min. 1st Qu. Median 3rd Qu. Max.
-0.1207980 -0.0228756 -0.0015757 0.0183999 0.1548035
Coefficients:
Estimate Std. Error t-value Pr(>|t|)
log(priv_cap) 0.23580111 0.02621777 8.9939 < 2.2e-16 ***
log(hwy) 0.07747252 0.03125904 2.4784 0.01341 *
log(water) 0.07821567 0.01500290 5.2134 2.391e-07 ***
log(util) -0.11438336 0.01815255 -6.3012 4.992e-10 ***
log(emp) 0.79958666 0.02974239 26.8837 < 2.2e-16 ***
unemp -0.00519584 0.00098018 -5.3009 1.510e-07 ***
---
Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
Total Sum of Squares: 18.941
Residual Sum of Squares: 1.0313
R-Squared: 0.94555
Adj. R-Squared: 0.94177
F-statistic: 2205.54 on 6 and 762 DF, p-value: < 2.22e-16
