In the U.S. savingsincome regression (9.5.4) discussed in the chapter, suppose that instead of using 1 and

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In the U.S. savings–income regression (9.5.4) discussed in the chapter, suppose that instead of using 1 and 0 values for the dummy variable you use Z_i = a + bD_i, where D_i = 1 and 0, a = 2, and b = 3. Compare your results.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: Apr 30, 2018 06:07 AM

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In the U.S. savingsincome regression (9.5.4) discussed in the chapter, suppose that instead of using 1 and

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In this case the dummy variable Z takes the value of 2 when D 0 and it takes the value of 5 when ...View the full answer

Basic Econometrics

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