Homework Assignment #5We are going to test how the strictness of employment protection affects the level of unemployment ina panel of OECD countries.1. Read in OECD data for real (1) GDP growth, (2) strictness of employment protection (individualand collective), and (3) the unemployment rate. All at yearly frequency.Hint: The package ‘OECD’ lets you do this from within R.2. Create a panel data set from these variables. Create a nice plot/plots of the data. Nicest plotgest one bonus point!3. Run the following modelsa. (pooled 1) 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝜀𝑖𝑡b. (pooled 2) 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝛽2𝑌𝑖𝑡 + 𝜀𝑖𝑡c. (FE 1) 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝛼𝑖 + 𝜀𝑖�代写data留学生作业、代做R编程语言作业、代写R课程设计作业 代写Database|帮做Java程序�d. (FE 2) 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝛽2𝑌𝑖𝑡 + 𝛼𝑖 + 𝜀𝑖𝑡e. (twoway 1) 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝛼𝑖 + 𝜏𝑡 + 𝜀𝑖𝑡f. (twoway 2) 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝛽2𝑌𝑖𝑡 + 𝛼𝑖 + 𝜏𝑡 + 𝜀𝑖𝑡4. Briefly explain each regression. What are the strengths weaknesses of each regression, are theresults as expected? How do you explain the difference in sign between pooled and fixedeffects? Does model f. make sense? Which is the best model?5. Formally test ifa. you should include country level fixed effects.b. How about two-way fixed effects?c. Should GDP be included in the regression?d. How about lagged GDP 𝑢𝑖𝑡 = 𝛽0 + 𝛽1𝐸𝑃𝑖𝑡 + 𝛽2𝑌𝑖𝑡−1 + 𝛼𝑖 + 𝜀𝑖𝑡转自：http://www.6daixie.com/contents/18/4504.html