Problem 1. The Stata .dta le called ExamStataDatacontains all of the variables in the Excel le called International Data. This .dta le is used by the Stata .do le called ExamStataControl .For your convenience, the le called ExamStataData.txt is also available, which is a .txt (Notepad) version of the same-named .do le. Among other things, the data les have data for the United Kingdom and the United States on: the capital stock; total work hours; the population ages 15 and over (henceforth simply referred to as the population); and the labor share.

Consider the following production function:

Part a.

Do the following for each country  Start off with the provided ExamStataControl.do le and add code to estimate this equation as a constrained regression where i is constrained to be the mean of the variable labsh_i and ln(zti) is treated as this regressions residual.

Also, add code to predict ln(zti) and call this variable log_i_zpop.

Finally, create a Word le and write down what your estimate of Zi is equal to and make note of whether this estimate is signicant and if so at what level (10 percent, 5 percent, or 1 percent).