Suppose that in Exercise 8.2 you thought that the value of (beta_{2}) was not constant but rather

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Suppose that in Exercise 8.2 you thought that the value of $\beta_{2}$ was not constant but rather increased when $K$ increased. How could you use an interaction term to capture this effect?

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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Question Posted: Apr 30, 2024 02:01 AM

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Suppose that in Exercise 8.2 you thought that the value of (beta_{2}) was not constant but rather

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Introduction To Econometrics

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