Reviews questions – Applied Econometrics Homework Two (Submit Completed Assignment Online via Canvas by 11:59PM on Sunday, March 5, 2022) You are attempting to see if the pharmaceutical industry practiced international price discrimination by estimating a model of the prices of pharmaceuticals in a cross section of 32 countries. You assume that if price discrimination […]
Describe how to interpret the parameters of the recorded model. Is there a reason to prefer one coding over the other?
Programming – Altering Dummy Variable Values Consider the two variable regression problem with a dummy variable in the design matrix: g = /30 + thi+ 71+ e, where 1 is a dummy-variable that is coded 1 if the observation satisfies a certain condition, and is 0 ti otherwise. Consider replacing the 0 and 1 values […]