Question: In one study, dummy variables were used for the structure of sovereign debt in ASEAN. The dummy variable is used with the following criteria. There

In one study, dummy variables were used for the structure of sovereign debt in ASEAN. The dummy variable is used with the following criteria. There are 5 countries involved in this study. Each country has carried out a series of reforms to its foreign debt. The steps for restructuring are divided according to the time before debt restructuring, during debt restructuring and after debt restructuring. Each country carries out debt restructuring at different times. Dummy D1 is before repairing, Dummy D2 is during repairing and D3 is after repairing. The observed period is 2000 to 2015. This study uses annual data data :

The Model defined as :

Debti = 0 + 1D2 + 2D3 + 1PDBi + 2PDBi D2 + 3PDBi D3 + 4Taxi + 5Expi ; =a=alpha

The results of the economic model regression are as follows :

In one study, dummy variables were used for the structure of sovereignWhere Debt : Debt (in billion Rupiah), PDB : State Production (in billion Rp), Exp : Expenditure (in billion Rp), Tax : Tax (%). The repair schedule is as follows

Country Repair Schedule
Malaysia 2002-2003
Indonesia 2003-2004
Philipina 2001-2002
Singapura 2001-2004
Thailand 2002-2002

Answer the following questions. a. Explain the purpose of the researcher using dummy variables in the econometric model above. b. Make a hypothesis about the relationship between the variables PDB (State Output) and Debt (Debt). c. Make a data structure (including dummy data) used in this study. Note: create a data table for 5 countries with 5 years. Fill in fictitious data only, the most important thing is that the dummy data structure is structured according to the model above. d. Based on the information above, analyze the results of the economic model regression above.

Debti = 0.9+0.2D2 - 0.5D3 +0.2PDB: -0.4PDB:D2 + 1.3PDB: D3 - 1.2Taxi + 1.4Expi t stat (2.0) (4.0) (-2.9) (2.4) (-0.2) (2.1) (-2.4) (2.2) F = 10,00, R2 = 0.89, DW = 1,99 Debti = 0.9+0.2D2 - 0.5D3 +0.2PDB: -0.4PDB:D2 + 1.3PDB: D3 - 1.2Taxi + 1.4Expi t stat (2.0) (4.0) (-2.9) (2.4) (-0.2) (2.1) (-2.4) (2.2) F = 10,00, R2 = 0.89, DW = 1,99

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