PublicSchools {sandwich} | R Documentation

## US Expenditures for Public Schools

### Description

Per capita expenditure on public schools and per capita income by state in 1979.

### Usage

    data(PublicSchools)

### Format

A data frame containing 51 observations of 2 variables.

Expenditure

  per capita expenditure on public schools,

Income

  per capita income.

### Source

Table 14.1 in Greene (1993)

### References

Cribari-Neto F. (2004), Asymptotic Inference Under Heteroskedasticity of Unknown Form, Computational Statistics \& Data Analysis, 45, 215-233.

Greene W.H. (1993), Econometric Analysis, 2nd edition. Macmillan Publishing Company, New York.

US Department of Commerce (1979), Statistical Abstract of the United States. US Government Printing Office, Washington, DC.

### Examples

    ## Willam H. Greene, Econometric Analysis, 2nd Ed.
    ## Chapter 14
    ## load data set, p. 385, Table 14.1
    data(PublicSchools)

    ## omit NA in Wisconsin and scale income
    ps <- na.omit(PublicSchools)
    ps$Income <- ps$Income * 0.0001

    ## fit quadratic regression, p. 385, Table 14.2
    fmq <- lm(Expenditure ~ Income + I(Income^2), data = ps)
    summary(fmq)

    ## compare standard and HC0 standard errors
    ## p. 391, Table 14.3
    library(sandwich)
    coef(fmq)
    sqrt(diag(vcovHC(fmq, type = "const")))
    sqrt(diag(vcovHC(fmq, type = "HC0")))

    if(require(lmtest)) {
    ## compare t ratio
    coeftest(fmq, vcov = vcovHC(fmq, type = "HC0"))

    ## White test, p. 393, Example 14.5
    wt <- lm(residuals(fmq)^2 ~ poly(Income, 4), data = ps)
    wt.stat <- summary(wt)$r.squared * nrow(ps)
    c(wt.stat, pchisq(wt.stat, df = 3, lower = FALSE))

    ## Bresch-Pagan test, p. 395, Example 14.7
    bptest(fmq, studentize = FALSE)
    bptest(fmq)

    ## Francisco Cribari-Neto, Asymptotic Inference, CSDA 45
    ## quasi z-tests, p. 229, Table 8
    ## with Alaska
    coeftest(fmq, df = Inf)[3,4]
    coeftest(fmq, df = Inf, vcov = vcovHC(fmq, type = "HC0"))[3,4]
    coeftest(fmq, df = Inf, vcov = vcovHC(fmq, type = "HC3"))[3,4]
    coeftest(fmq, df = Inf, vcov = vcovHC(fmq, type = "HC4"))[3,4]
    ## without Alaska (observation 2)
    fmq1 <- lm(Expenditure ~ Income + I(Income^2), data = ps[-2,])
    coeftest(fmq1, df = Inf)[3,4]
    coeftest(fmq1, df = Inf, vcov = vcovHC(fmq1, type = "HC0"))[3,4]
    coeftest(fmq1, df = Inf, vcov = vcovHC(fmq1, type = "HC3"))[3,4]
    coeftest(fmq1, df = Inf, vcov = vcovHC(fmq1, type = "HC4"))[3,4]
    }

    ## visualization, p. 230, Figure 1
    plot(Expenditure ~ Income, data = ps,
      xlab = "per capita income",
      ylab = "per capita spending on public schools")
    inc <- seq(0.5, 1.2, by = 0.001)
    lines(inc, predict(fmq, data.frame(Income = inc)), col = 4)
    fml <- lm(Expenditure ~ Income, data = ps)
    abline(fml)
    text(ps[2,2], ps[2,1], rownames(ps)[2], pos = 2)

[Package sandwich version 2.4-0 Index]