ECN21004 Econometrics
This coursework comprises 20 tasks in total. Perform all tasks and report the results in a
research poster in the format of a power-point slide.
Coursework must be submitted online through Blackboard using Turnitin and by no later than
12.00 noon on Monday 12th December 2022. Coursework submitted after the 12.00 noon
deadline will have a late penalty applied. Details about the late penalty policy can be found in
the Student Handbook.
The research poster should be submitted by the group coordinator as a PDF file. You must
attach a submission template coversheet to the front of your work when submitting it to Turnitin
to avoid a 5% penalty. Full details of this policy can be found in the Student Handbook. Also
submit a STATA do-file with the code used to perform all tasks to the module leader via email,
clearly indicating in the name of the file your group.
Please ensure that you have carefully read the coursework instructions available on
Blackboard and the assessment guidelines provided in the Student Handbook, including the
guidance about submission requirements, extension requests and extenuating circumstances
and the use of unfair means.
The Effect of the Stamp Duty holiday (SDH) on property prices in England
Compulsory Reading:
Farid, M. (2021). Land Tax Holiday and House Prices: Evidence from the UK. SSRN working
paper no. 3949500.
Tasks:
1. Use the HM Land Registry “LAND_REG” dataset. This database includes information
about all residential properties transacted in England between 2010 and 2021.
Variables description provided in the labels. More information regarding the database
available at this website.
2. Drop observations before 2017 and after June 2021.
3. Merge the Land Registry data with the neighbourhood characteristics dataset
(“MSOA_IMD”) using the msoa_id variable. This database provides additional
information regarding the neighbourhood level of deprivation according to the English
Index of Multiple Deprivation, the Local Authority District, and the UK Region.
4. Generate numerical variables for the MSOA and LAD string variables.
5. Generate the variable of log prices.
6. Generate a dummy variable identifying properties eligible for the Stamp Duty Holiday
(SDH) (properties with a price below ￡500k).
7. Generate a dummy variable identifying properties affected by the SDH (properties
transacted since July 2020 until the end of June 2021).
8. Generate a line diagram comparing the average log house price of SDH eligible and
ineligible properties before and during the SDH period.
9. Generate a map showing the share of properties affected by SDH over total number
of transacted properties per LAD between July 2020 and June 2021 using the
shapefile “ENG_LAD”. Merge the data and shapefile using the variable “LAD20CD”.
10. Estimate a difference-in-differences model to estimate the effect of the SDH on the
house prices of eligible properties before and during the SDH period, using ineligible
properties as a control group. Add the available property characteristics as control
variables.
11. Add to the previous model year fixed-effects.
12. Add to the previous model Local Authority District (LAD) fixed-effects.
13. Add to the previous model neighbourhood (MSOA) fixed-effects.
14. Generate a variable combining LAD and year fixed-effects and add this variable to the
previous model.
15. Repeat the previous point restricting the analysis only to properties sold at a price
between ￡400k and ￡600k.
16. Repeat point 13 assigning the SDH treatment period to Q3-2018, Q4-2018, Q1-2019
and Q2-2019 (a so-called “placebo test”).
17. Estimate if the effect is stronger for properties more suitable for working from home
(terraced, detached and semidetached houses rather than flats).
18. Estimate if the effect was different across the 9 different English regions.
19. Estimate if the effect was different in low, medium or high deprivation neighbourhoods.
20. Report and comment on your results in a research poster following the guidelines
provided.