1.

a
Linear regression
lvio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
v_shall -.443 .048 -9.32 0 -.536 -.35 ***
Constant 6.135 .019 317.81 0 6.097 6.173 ***

Mean dependent var 6.027 SD dependent var 0.646

R-squared 0.087 Number of obs 1173.000

F-test 86.863 Prob > F 0.000

Akaike crit. (AIC) 2199.318 Bayesian crit. (BIC) 2209.453

*** p<.01, ** p<.05, * p<.1

b.
Linear regression
lvio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
v_shall -.325 .033 -9.73 0 -.39 -.259 ***
incarc_rate .001 0 6.93 0 .001 .001 ***
densitym 0 0 -4.30 0 0 0 ***
rpcpi 0 0 6.01 0 0 0 ***
stpop 0 0 14.17 0 0 0 ***
pb1064 .029 .004 7.81 0 .021 .036 ***
pw1064 0 .002 0.05 .961 -.004 .005
pm1029 .012 .012 1.03 .302 -.011 .035
Constant 4.71 .17 27.70 0 4.377 5.044 ***

Mean dependent var 6.027 SD dependent var 0.646

R-squared 0.600 Number of obs 1173.000

F-test 168.864 Prob > F 0.000

Akaike crit. (AIC) 1245.357 Bayesian crit. (BIC) 1290.963

*** p<.01, ** p<.05, * p<.1

c.
Linear regression
lvio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
v_shall -.257 .03 -8.62 0 -.315 -.198 ***
incarc_rate .002 0 9.04 0 .001 .002 ***
densitym 0 0 1.06 .291 0 0
rpcpi 0 0 4.33 0 0 0 ***
stpop 0 0 10.31 0 0 0 ***
o.rpcpi 0 . . . . .
rpcui .002 0 6.22 0 .001 .002 ***
rpcim -.001 0 -2.92 .004 -.001 0 ***
pbm1019 2.797 .751 3.73 0 1.324 4.27 ***
pbm2029 .695 .383 1.81 .07 -.057 1.447 *
 pbm3039 -1.89 .508 -3.72 0 -2.887 -.893 ***
pbm4049 .111 .555 0.20 .841 -.978 1.2
pbm5064 1.585 .597 2.65 .008 .413 2.756 ***
pbmo65 -2.091 .5 -4.18 0 -3.072 -1.109 ***
pbf1019 -1.873 .731 -2.56 .011 -3.307 -.438 **
pbf2029 -.965 .363 -2.66 .008 -1.678 -.253 ***
pbf3039 2.104 .423 4.97 0 1.274 2.933 ***
pbf4049 -.804 .495 -1.63 .104 -1.775 .166
pbf5064 -1.014 .485 -2.09 .037 -1.966 -.061 **
pbfo65 .95 .348 2.73 .006 .268 1.633 ***
pwm1019 .093 .205 0.46 .649 -.309 .496
pwm2029 -.45 .116 -3.89 0 -.677 -.223 ***
pwm3039 .01 .153 0.06 .948 -.289 .309
pwm4049 -.309 .143 -2.16 .031 -.591 -.028 **
pwm5064 -.033 .037 -0.91 .364 -.106 .039
pwmo65 .299 .074 4.04 0 .154 .443 ***
pwf1019 -.116 .224 -0.52 .605 -.555 .324
pwf2029 .606 .115 5.28 0 .381 .831 ***
pwf3039 .166 .146 1.14 .255 -.12 .452
pwf4049 .157 .166 0.95 .343 -.168 .483
pwf5064 .138 .024 5.86 0 .092 .185 ***
pwfo65 -.229 .046 -4.94 0 -.32 -.138 ***
pnm1019 -7.768 1.384 -5.61 0 -10.484 -5.051 ***
pnm3039 6.643 1.13 5.88 0 4.425 8.861 ***
pnm4049 -1.538 .874 -1.76 .079 -3.252 .176 *
pnm5064 -7.76 .878 -8.84 0 -9.482 -6.038 ***
pnmo65 -1.937 .447 -4.34 0 -2.814 -1.061 ***
pnf1019 7.712 1.344 5.74 0 5.074 10.349 ***
pnf2029 .98 .379 2.58 .01 .236 1.724 ***
pnf3039 -6.266 1.12 -5.59 0 -8.465 -4.068 ***
pnf4049 2.837 .89 3.19 .001 1.09 4.584 ***
pnf5064 6.874 .975 7.05 0 4.962 8.786 ***
pnfo65 -.228 .086 -2.64 .008 -.397 -.059 ***
Constant 2.189 1.127 1.94 .052 -.023 4.4 *

Mean dependent var 6.027 SD dependent var 0.646

R-squared 0.772 Number of obs 1173.000

F-test 132.137 Prob > F 0.000

Akaike crit. (AIC) 652.963 Bayesian crit. (BIC) 870.857

*** p<.01, ** p<.05, * p<.1

i. The coefficient of v-shall seems to be 1% statistically significant for all specifications. States with a
shall issue seems to experience less violent crimes since there exist a rigorous process for vetting and
approving gun issues. The coefficient is specification (c) seems more realistic and is slightly above the
real-world case.
.
ii. The addition of the control variables solved the problem of omitted variable bias. The coefficient of the
v_shall was -0.443 which indicates that states that have a shall-issue law in place (as against states that do
not have one in place) will experience a 44.3% decrease in violent crime rates. Interestingly the R-
squared shows that the univariate model explains 8.7% of the variation in violent crimes hence there
might be existence of omitted variable bias. The specification in (b) limits the occurrence of omitted
variable bias with the inclusion of the control variables, this is evident in the reduction of the coefficient
of the v-shall from -0.443 to -0.325. Similarly, the inclusion of more control variables in (c) reduces
further the problem of omitted bias. For specification (c), the model reveals that States with a shall issue
law in place relative to states without should expect a 25.7% reduction in violent crimes

iii. Incarceration rates varies across states and may vary very little over time. The exclusion of this
variable may engender omitted variable bias.

2. Linear regression
Lvio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
v_shall -.05 .017 -2.97 .003 -.083 -.017 ***
incarc_rate -.001 0 -7.58 0 -.001 -.001 ***
Density -.001 0 -3.37 .001 -.001 0 ***
Rpcpi 0 0 0.62 .534 0 0
Stpop 0 0 2.79 .005 0 0 ***
o.rpcpi 0 . . . . .
Rpcui 0 0 -1.34 .181 0 0
Rpcim 0 0 -0.99 .323 -.001 0
pbm1019 1.084 .594 1.83 .068 -.081 2.249 *
pbm2029 -.02 .29 -0.07 .944 -.589 .548
pbm3039 .851 .318 2.68 .007 .228 1.474 ***
pbm4049 -.111 .428 -0.26 .796 -.952 .73
pbm5064 1.239 .487 2.54 .011 .283 2.195 **
pbmo65 -.136 .408 -0.33 .738 -.937 .664
pbf1019 -.627 .586 -1.07 .286 -1.777 .524
pbf2029 .017 .278 0.06 .952 -.529 .563
pbf3039 -.394 .251 -1.57 .117 -.885 .098
pbf4049 .497 .389 1.28 .202 -.266 1.26
pbf5064 -1.535 .395 -3.88 0 -2.311 -.76 ***
pbfo65 .163 .306 0.53 .595 -.438 .764
pwm1019 -.215 .197 -1.09 .275 -.601 .171
pwm2029 -.266 .072 -3.68 0 -.408 -.124 ***
pwm3039 .989 .105 9.46 0 .784 1.194 ***
pwm4049 -.498 .12 -4.16 0 -.733 -.263 ***
pwm5064 -.02 .025 -0.82 .411 -.068 .028
pwmo65 -.352 .08 -4.39 0 -.509 -.195 ***
pwf1019 .325 .205 1.59 .113 -.077 .728
pwf2029 .383 .078 4.90 0 .23 .537 ***
pwf3039 -.81 .108 -7.47 0 -1.023 -.598 ***
pwf4049 .601 .13 4.64 0 .347 .856 ***
pwf5064 .107 .009 12.21 0 .09 .124 ***
pwfo65 .342 .054 6.32 0 .236 .448 ***
pnm1019 .099 .791 0.13 .9 -1.452 1.65
pnm3039 4.442 .401 11.08 0 3.655 5.229 ***
pnm4049 -.328 .548 -0.60 .549 -1.403 .747
pnm5064 -1.805 .644 -2.80 .005 -3.07 -.541 ***
pnmo65 -1.614 .362 -4.46 0 -2.324 -.904 ***
pnf1019 .034 .805 0.04 .967 -1.547 1.614
pnf2029 -.177 .14 -1.26 .207 -.451 .098
pnf3039 -4.016 .397 -10.11 0 -4.795 -3.237 ***
pnf4049 1.079 .571 1.89 .059 -.042 2.2 *
pnf5064 1.882 .516 3.65 0 .869 2.895 ***
pnfo65 -.069 .038 -1.83 .067 -.143 .005 *
1b.fipsstat 0 . . . . .
2.fipsstat .779 .498 1.57 .117 -.197 1.756
4.fipsstat .647 .327 1.98 .048 .005 1.289 **
5.fipsstat -.027 .143 -0.19 .849 -.308 .254
6.fipsstat .269 .24 1.12 .264 -.203 .74
8.fipsstat -.147 .302 -0.49 .627 -.739 .445
9.fipsstat -.155 .28 -0.55 .579 -.704 .394
10.fipsstat .026 .171 0.15 .881 -.311 .362
11.fipsstat 7.383 1.833 4.03 0 3.785 10.98 ***
12.fipsstat .575 .218 2.64 .008 .148 1.002 ***
13.fipsstat -.223 .076 -2.93 .003 -.372 -.073 ***
15.fipsstat 3.443 1.295 2.66 .008 .902 5.984 ***
16.fipsstat -.009 .346 -0.02 .98 -.688 .671
17.fipsstat .185 .161 1.14 .253 -.132 .501
18.fipsstat -.352 .242 -1.46 .146 -.826 .122
19.fipsstat -.925 .322 -2.87 .004 -1.558 -.293 ***
20.fipsstat -.398 .278 -1.43 .153 -.943 .148
21.fipsstat -.447 .254 -1.76 .079 -.945 .051 *
22.fipsstat .31 .084 3.68 0 .145 .474 ***
23.fipsstat -1.128 .342 -3.30 .001 -1.798 -.457 ***
24.fipsstat .281 .132 2.12 .034 .021 .54 **
25.fipsstat .016 .316 0.05 .959 -.604 .636
26.fipsstat .204 .172 1.18 .236 -.134 .542
27.fipsstat -.808 .315 -2.56 .011 -1.426 -.189 **
28.fipsstat -.518 .148 -3.50 0 -.809 -.228 ***
29.fipsstat -.012 .207 -0.06 .954 -.418 .394
30.fipsstat -.394 .373 -1.06 .291 -1.125 .338
31.fipsstat -.634 .307 -2.06 .039 -1.237 -.031 **
32.fipsstat .827 .317 2.61 .009 .205 1.45 ***
33.fipsstat -1.415 .343 -4.13 0 -2.088 -.742 ***
34.fipsstat .331 .253 1.31 .191 -.165 .827
35.fipsstat 1.037 .358 2.90 .004 .335 1.739 ***
36.fipsstat .282 .191 1.48 .14 -.092 .657
37.fipsstat -.17 .08 -2.12 .034 -.327 -.013 **
38.fipsstat -1.603 .371 -4.32 0 -2.331 -.874 ***
39.fipsstat -.32 .212 -1.51 .131 -.736 .095
40.fipsstat .244 .293 0.83 .405 -.33 .818
41.fipsstat .222 .329 0.67 .5 -.424 .867
42.fipsstat -.575 .227 -2.53 .011 -1.019 -.13 **
44.fipsstat -.195 .353 -0.55 .58 -.888 .497
45.fipsstat .272 .084 3.23 .001 .107 .438 ***
46.fipsstat -.769 .377 -2.04 .041 -1.508 -.03 **
47.fipsstat -.021 .144 -0.14 .885 -.303 .261
48.fipsstat -.194 .183 -1.06 .29 -.552 .165
49.fipsstat -.075 .342 -0.22 .827 -.747 .597
 50.fipsstat -1.128 .344 -3.28 .001 -1.803 -.453 ***
51.fipsstat -.633 .144 -4.39 0 -.916 -.35 ***
53.fipsstat .116 .317 0.37 .714 -.506 .739
54.fipsstat -.98 .303 -3.24 .001 -1.574 -.386 ***
55.fipsstat -.931 .284 -3.28 .001 -1.489 -.373 ***
56.fipsstat -.157 .362 -0.43 .665 -.868 .554
Constant 1.048 .678 1.55 .122 -.281 2.378

Mean dependent var 6.027 SD dependent var 0.646

R-squared 0.970 Number of obs 1173.000

F-test 452.456 Prob > F 0.000

Akaike crit. (AIC) -1642.745 Bayesian crit. (BIC) -1171.484

*** p<.01, ** p<.05, * p<.1

i. The inclusion of time-invariant state effects shows that there exists some level of heterogeneity
among the States. One of the variables, which exhibit some level of variation among States, is the
incarceration rate. After the inclusion of the time-invariant state effects, the coefficient for
incarc_rate changed from 0.02 to -0.01. This indicates that a unit increase in incarceration rate
would lead to a decline in violent crimes by 1%. This is the true reflection of the real life
scenario.

ii. The population per square mile of land area will vary over a time period may be constant for
states. This can cause omitted variable bias.

3. Linear regression
lvio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
v_shall -.065 .018 -3.60 0 -.1 -.029 ***
incarc_rate -.001 0 -6.86 0 -.001 0 ***
densitym -.001 0 -3.69 0 -.001 0 ***
rpcpi 0 0 -0.41 .683 0 0
stpop 0 0 3.63 0 0 0 ***
o.rpcpi 0 . . . . .
rpcui 0 0 -1.05 .292 -.001 0
rpcim -.001 0 -3.32 .001 -.001 0 ***
pbm1019 1.353 .597 2.27 .024 .182 2.524 **
pbm2029 -.125 .272 -0.46 .645 -.659 .409
pbm3039 1.086 .313 3.47 .001 .472 1.701 ***
pbm4049 .175 .423 0.41 .679 -.655 1.006
pbm5064 1.635 .491 3.33 .001 .672 2.599 ***
pbmo65 .155 .381 0.41 .684 -.593 .903
pbf1019 -.966 .584 -1.65 .098 -2.112 .179 *
pbf2029 .161 .265 0.61 .545 -.36 .681
pbf3039 -.614 .237 -2.59 .01 -1.079 -.148 ***
pbf4049 .14 .397 0.35 .723 -.638 .919
pbf5064 -1.688 .389 -4.34 0 -2.452 -.925 ***
pbfo65 .055 .291 0.19 .85 -.516 .627
pwm1019 -.257 .188 -1.37 .172 -.625 .112
pwm2029 -.257 .069 -3.73 0 -.393 -.122 ***
pwm3039 .728 .117 6.19 0 .497 .958 ***
pwm4049 -.536 .125 -4.29 0 -.782 -.291 ***
pwm5064 -.002 .045 -0.05 .959 -.091 .086
pwmo65 -.405 .077 -5.27 0 -.556 -.254 ***
pwf1019 .334 .197 1.70 .09 -.052 .72 *
pwf2029 .407 .073 5.59 0 .264 .549 ***
pwf3039 -.576 .122 -4.71 0 -.816 -.336 ***
pwf4049 .535 .139 3.85 0 .262 .807 ***
pwf5064 .11 .026 4.25 0 .059 .161 ***
pwfo65 .352 .055 6.36 0 .243 .46 ***
pnm1019 -.1 .811 -0.12 .902 -1.691 1.492
pnm3039 3.765 .438 8.60 0 2.906 4.624 ***
pnm4049 .26 .552 0.47 .638 -.824 1.344
pnm5064 -1.859 .602 -3.09 .002 -3.04 -.678 ***
pnmo65 -1.993 .367 -5.43 0 -2.713 -1.273 ***
pnf1019 .356 .821 0.43 .664 -1.255 1.967
pnf2029 -.242 .14 -1.73 .084 -.516 .033 *
pnf3039 -3.295 .412 -8.00 0 -4.104 -2.487 ***
pnf4049 .415 .565 0.73 .463 -.695 1.524
pnf5064 1.783 .496 3.59 0 .809 2.756 ***
pnfo65 -.032 .038 -0.84 .403 -.108 .043
1b.fipsstat 0 . . . . .
2.fipsstat 1.336 .499 2.68 .007 .358 2.314 ***
4.fipsstat .861 .316 2.72 .007 .24 1.481 ***
5.fipsstat .064 .136 0.47 .636 -.202 .331
6.fipsstat .482 .262 1.84 .066 -.032 .996 *
8.fipsstat .131 .298 0.44 .66 -.453 .716
9.fipsstat .12 .274 0.44 .663 -.418 .658
10.fipsstat .09 .162 0.55 .581 -.229 .408
11.fipsstat 6.793 1.782 3.81 0 3.295 10.29 ***
12.fipsstat .689 .222 3.10 .002 .253 1.125 ***
13.fipsstat -.182 .07 -2.61 .009 -.319 -.045 ***
15.fipsstat 5.025 1.326 3.79 0 2.424 7.626 ***
16.fipsstat .295 .335 0.88 .379 -.362 .952
17.fipsstat .316 .165 1.91 .056 -.008 .64 *
18.fipsstat -.224 .24 -0.93 .35 -.696 .247
19.fipsstat -.68 .317 -2.14 .032 -1.302 -.058 **
20.fipsstat -.198 .272 -0.73 .468 -.732 .337
21.fipsstat -.28 .247 -1.13 .257 -.765 .205
22.fipsstat .304 .09 3.39 .001 .128 .481 ***
23.fipsstat -.799 .34 -2.35 .019 -1.465 -.133 **
24.fipsstat .302 .131 2.30 .022 .044 .559 **
25.fipsstat .211 .312 0.68 .498 -.401 .823
26.fipsstat .318 .171 1.86 .062 -.017 .653 *
27.fipsstat -.541 .31 -1.74 .081 -1.15 .068 *
28.fipsstat -.577 .155 -3.71 0 -.882 -.272 ***
29.fipsstat .122 .206 0.59 .554 -.283 .527
30.fipsstat -.053 .364 -0.15 .883 -.768 .661
31.fipsstat -.404 .3 -1.34 .179 -.993 .186
32.fipsstat 1.162 .317 3.67 0 .54 1.783 ***
33.fipsstat -1.098 .342 -3.22 .001 -1.768 -.428 ***
34.fipsstat .466 .247 1.89 .059 -.018 .951 *
35.fipsstat 1.269 .342 3.71 0 .598 1.941 ***
36.fipsstat .453 .206 2.19 .028 .048 .858 **
37.fipsstat -.176 .084 -2.09 .037 -.341 -.01 **
38.fipsstat -1.269 .361 -3.51 0 -1.979 -.56 ***
39.fipsstat -.243 .213 -1.14 .255 -.662 .176
40.fipsstat .456 .286 1.60 .111 -.105 1.017
41.fipsstat .564 .324 1.74 .082 -.072 1.199 *
42.fipsstat -.44 .23 -1.91 .057 -.892 .012 *
44.fipsstat .009 .337 0.03 .978 -.652 .67
45.fipsstat .218 .08 2.74 .006 .062 .375 ***
46.fipsstat -.495 .364 -1.36 .174 -1.21 .22
47.fipsstat .08 .143 0.56 .575 -.201 .362
48.fipsstat -.177 .183 -0.97 .333 -.536 .182
49.fipsstat .041 .341 0.12 .904 -.627 .709
50.fipsstat -.793 .338 -2.35 .019 -1.457 -.13 **
51.fipsstat -.666 .145 -4.58 0 -.951 -.38 ***
53.fipsstat .438 .314 1.40 .163 -.177 1.053
54.fipsstat -.731 .292 -2.50 .013 -1.305 -.158 **
55.fipsstat -.657 .279 -2.35 .019 -1.205 -.109 **
56.fipsstat .246 .356 0.69 .489 -.452 .945
1977b.year 0 . . . . .
1978.year -.003 .029 -0.12 .903 -.06 .053
1979.year .067 .031 2.19 .028 .007 .127 **
1980.year .081 .04 2.04 .042 .003 .158 **
1981.year .047 .047 1.01 .312 -.044 .139
1982.year .003 .054 0.05 .958 -.103 .108
1983.year -.026 .059 -0.45 .654 -.141 .089
1984.year -.018 .065 -0.28 .782 -.145 .109
1985.year .02 .071 0.28 .778 -.119 .159
1986.year .096 .077 1.24 .216 -.056 .248
1987.year .107 .082 1.31 .191 -.053 .267
1988.year .183 .087 2.10 .036 .012 .354 **
1989.year .262 .092 2.84 .005 .081 .442 ***
1990.year .209 .101 2.07 .038 .011 .406 **
1991.year .274 .104 2.63 .009 .069 .478 ***
1992.year .338 .109 3.11 .002 .125 .551 ***
1993.year .369 .111 3.31 .001 .15 .587 ***
1994.year .382 .115 3.32 .001 .156 .608 ***
1995.year .426 .119 3.58 0 .193 .66 ***
1996.year .416 .124 3.37 .001 .174 .659 ***
1997.year .435 .126 3.46 .001 .189 .681 ***
1998.year .416 .129 3.22 .001 .162 .67 ***
1999.year .407 .135 3.01 .003 .141 .672 ***
Constant 1.661 .888 1.87 .062 -.081 3.403 *

Mean dependent var 6.027 SD dependent var 0.646

R-squared 0.974 Number of obs 1173.000

F-test . Prob > F .

Akaike crit. (AIC) -1734.221 Bayesian crit. (BIC) -1156.546

*** p<.01, ** p<.05, * p<.1

After the incorporation of both time and entity effects, the regression output was not too different
from the results from question 2. One difference is the slight increment in the coefficient of
v_shall. The more credible results will be the results that factors both time-effects and entity
 effects and the regression in question 3 fits that type of model. The regression will be more robust
since it has solved the issue of omitted variable bias, entity heterogeneity and time effects

4.

Linear regression
lvio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
v_shall -.065 .034 -1.89 .064 -.134 .004 *
incarc_rate -.001 0 -3.32 .002 -.001 0 ***
densitym -.001 0 -2.86 .006 -.001 0 ***
stpop 0 0 1.81 .076 0 0 *
rpcpi 0 0 -0.22 .829 0 0
rpcui 0 0 -0.79 .431 -.001 0
rpcim -.001 .001 -1.45 .155 -.002 0
pbm1019 1.353 1.018 1.33 .19 -.692 3.397
pbm2029 -.125 .42 -0.30 .766 -.969 .718
pbm3039 1.086 .564 1.93 .06 -.046 2.219 *
pbm4049 .175 .783 0.22 .824 -1.397 1.748
pbm5064 1.635 1.089 1.50 .14 -.553 3.823
pbmo65 .155 .842 0.18 .854 -1.535 1.846
pbf1019 -.966 .969 -1.00 .323 -2.912 .979
pbf2029 .161 .408 0.39 .696 -.659 .98
pbf3039 -.614 .42 -1.46 .15 -1.457 .229
pbf4049 .14 .743 0.19 .851 -1.351 1.632
pbf5064 -1.688 .859 -1.97 .055 -3.413 .036 *
pbfo65 .055 .606 0.09 .928 -1.163 1.273
pwm1019 -.257 .349 -0.74 .466 -.959 .445
pwm2029 -.257 .137 -1.88 .066 -.533 .018 *
pwm3039 .728 .215 3.39 .001 .296 1.159 ***
pwm4049 -.536 .178 -3.02 .004 -.894 -.179 ***
pwm5064 -.002 .097 -0.02 .981 -.197 .192
pwmo65 -.405 .146 -2.78 .008 -.698 -.112 ***
pwf1019 .334 .36 0.93 .359 -.39 1.058
pwf2029 .407 .142 2.87 .006 .122 .691 ***
pwf3039 -.576 .239 -2.41 .019 -1.055 -.097 **
pwf4049 .535 .189 2.83 .007 .155 .914 ***
pwf5064 .11 .057 1.94 .058 -.004 .224 *
pwfo65 .352 .098 3.59 .001 .155 .549 ***
pnm1019 -.1 1.003 -0.10 .921 -2.115 1.915
pnm3039 3.765 .76 4.95 0 2.239 5.292 ***
pnm4049 .26 1.222 0.21 .832 -2.194 2.714
pnm5064 -1.859 1.048 -1.77 .082 -3.963 .245 *
pnmo65 -1.993 .625 -3.19 .002 -3.248 -.738 ***
pnf1019 .356 1.049 0.34 .736 -1.751 2.464
pnf2029 -.242 .251 -0.96 .34 -.746 .263
pnf3039 -3.295 .668 -4.93 0 -4.637 -1.954 ***
pnf4049 .415 1.168 0.36 .724 -1.931 2.761
pnf5064 1.783 .88 2.02 .048 .014 3.551 **
pnfo65 -.032 .033 -0.98 .331 -.098 .034
1b.fipsstat 0 . . . . .
2.fipsstat 1.336 .897 1.49 .143 -.465 3.137
4.fipsstat .861 .736 1.17 .248 -.618 2.339
5.fipsstat .064 .321 0.20 .842 -.581 .71
6.fipsstat .482 .623 0.77 .443 -.77 1.734
8.fipsstat .131 .641 0.20 .839 -1.156 1.419
9.fipsstat .12 .575 0.21 .836 -1.036 1.275
10.fipsstat .09 .33 0.27 .787 -.573 .752
11.fipsstat 6.793 3.057 2.22 .031 .653 12.932 **
12.fipsstat .689 .533 1.29 .202 -.381 1.759
13.fipsstat -.182 .124 -1.47 .148 -.431 .067
15.fipsstat 5.025 2.73 1.84 .072 -.459 10.508 *
16.fipsstat .295 .757 0.39 .699 -1.226 1.816
17.fipsstat .316 .382 0.83 .412 -.452 1.084
18.fipsstat -.224 .559 -0.40 .69 -1.347 .898
19.fipsstat -.68 .75 -0.91 .369 -2.187 .827
20.fipsstat -.198 .628 -0.31 .754 -1.46 1.065
21.fipsstat -.28 .54 -0.52 .606 -1.365 .804
22.fipsstat .304 .16 1.91 .062 -.016 .625 *
23.fipsstat -.799 .759 -1.05 .298 -2.324 .727
24.fipsstat .302 .24 1.26 .215 -.181 .784
25.fipsstat .211 .641 0.33 .743 -1.076 1.498
26.fipsstat .318 .369 0.86 .392 -.422 1.058
27.fipsstat -.541 .711 -0.76 .45 -1.97 .888
28.fipsstat -.577 .299 -1.93 .059 -1.177 .023 *
29.fipsstat .122 .49 0.25 .804 -.862 1.106
30.fipsstat -.053 .8 -0.07 .947 -1.661 1.554
31.fipsstat -.404 .702 -0.58 .568 -1.813 1.005
32.fipsstat 1.162 .644 1.80 .077 -.132 2.456 *
33.fipsstat -1.098 .76 -1.44 .155 -2.625 .429
34.fipsstat .466 .45 1.04 .305 -.437 1.37
35.fipsstat 1.269 .754 1.68 .098 -.245 2.783 *
36.fipsstat .453 .415 1.09 .28 -.381 1.286
37.fipsstat -.176 .137 -1.28 .205 -.451 .099
38.fipsstat -1.269 .806 -1.57 .122 -2.889 .35
39.fipsstat -.243 .466 -0.52 .605 -1.179 .693
40.fipsstat .456 .643 0.71 .481 -.835 1.748
41.fipsstat .564 .74 0.76 .45 -.924 2.051
42.fipsstat -.44 .522 -0.84 .403 -1.488 .608
44.fipsstat .009 .68 0.01 .989 -1.356 1.375
45.fipsstat .218 .153 1.43 .16 -.089 .526
46.fipsstat -.495 .835 -0.59 .556 -2.172 1.181
47.fipsstat .08 .318 0.25 .802 -.559 .72
48.fipsstat -.177 .437 -0.41 .687 -1.055 .7
49.fipsstat .041 .764 0.05 .957 -1.492 1.575
50.fipsstat -.793 .743 -1.07 .291 -2.286 .699
51.fipsstat -.666 .253 -2.63 .011 -1.174 -.157 **
53.fipsstat .438 .696 0.63 .532 -.96 1.836
54.fipsstat -.731 .659 -1.11 .273 -2.055 .593
55.fipsstat -.657 .652 -1.01 .319 -1.967 .653
56.fipsstat .246 .733 0.34 .738 -1.226 1.718
1977b.year 0 . . . . .
1978.year -.003 .022 -0.16 .873 -.047 .04
1979.year .067 .041 1.62 .11 -.016 .15
1980.year .081 .063 1.27 .209 -.047 .208
1981.year .047 .08 0.59 .559 -.114 .208
1982.year .003 .104 0.03 .978 -.205 .211
1983.year -.026 .119 -0.22 .826 -.265 .212
1984.year -.018 .132 -0.14 .893 -.284 .248
1985.year .02 .148 0.13 .893 -.277 .317
1986.year .096 .164 0.58 .562 -.234 .426
1987.year .107 .173 0.62 .541 -.241 .454
1988.year .183 .188 0.97 .334 -.194 .559
1989.year .262 .2 1.31 .196 -.139 .662
1990.year .209 .205 1.02 .313 -.203 .62
1991.year .274 .212 1.29 .202 -.151 .699
1992.year .338 .221 1.53 .132 -.105 .782
1993.year .369 .227 1.63 .11 -.087 .824
1994.year .382 .233 1.64 .107 -.086 .85
1995.year .426 .241 1.77 .084 -.059 .911 *
1996.year .416 .25 1.66 .103 -.087 .919
1997.year .435 .253 1.72 .092 -.074 .944 *
1998.year .416 .263 1.58 .119 -.111 .943
1999.year .407 .272 1.50 .141 -.139 .952
Constant 1.661 1.778 0.93 .355 -1.91 5.232

Mean dependent var 6.027 SD dependent var 0.646

R-squared 0.974 Number of obs 1173.000

F-test . Prob > F .

Akaike crit. (AIC) -1862.221 Bayesian crit. (BIC) -1608.855

*** p<.01, ** p<.05, * p<.1

Robust clustered standard errors at state level is used because the addition of the state fixed
effects makes the states identical, hence to estimate the regression, you need standard errors
which are clustered and can accommodate the identical nature of the entity in this case the
States.

5. The variable shall-issue was found to be statistically insignificant in the determination of murder
rates even though its coefficient was -.009. Similarly, rape, larceny and property crime were
found to be statistically insignificant.

6. The most important remaining threat to the validity of the panel model is the test for the existence
of any correlation between the regressors and the entity heterogeneity. The Breush Pagan test can
be conducted to ascertain that suspicion. The presence of that prompts the use of the fixed effects
model in the estimation. However, the absence of it means the initial model is valid and robust
enough for inferences.

7. For all the models estimated, it has been established that states with laws on gun issuing are less
likely of experiencing any increase in violent crimes. Therefore, the laws on concealed weapons
has an effect on the violent crime rate in the US.