Suppose you have run the regression , where Urban indicates living in a city and Immigrant indicates being an immigrant. The coefficient is interpreted as the ceteris paribus difference in between
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Suppose you have run the regression , where Urban indicates living in a city and Immigrant indicates being an immigrant. The coefficient is interpreted as the ceteris paribus difference in between
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Suppose you have run the regression y = α + β x + γ Urban + θ Immigrant + δ Urban×Immigrant + ϵ, where Urban indicates living in a city and Immigrant indicates being an immigrant. The coefficient θ is interpreted as the ceteris paribus difference in y between (A) A rural immigrant and a rural native (B) None of the above (C) An immigrant and a native (D) An urban immigrant and an urban native
Also written as: Suppose you have run the regression y = alpha + beta x + gamma Urban + theta Immigrant + delta Urban*Immigrant + epsilon, where Urban indicates living in a city and Immigrant indicates being an immigrant. The coefficient theta is interpreted as the ceteris paribus difference in y between
Dummy variables and functional forms has come up 20 times in 6 exams since 2011.
This question is on Interaction terms and piecewise regressions, part of Dummy variables and functional forms in Econometrics.
Letting slopes differ across groups or ranges.
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