Suppose a researcher believes that the occurrence of natural disasters such as earthquakes leads to increased activity in the construction industry. he decides to collect province-level data on employment in the construction industry of an earthquake-prone country, like Japan, and regress this variable on an indicator variable that equals 1 if an earthquake took place in that province in the last five years. a. Should the researcher include province fixed effects in
Suppose a researcher believes that the occurrence of natural disasters such as earthquakes leads to increased activity in the construction industry. he decides to collect province-level data on employment in the construction industry of an earthquake-prone country, like Japan, and regress this variable on an indicator variable that equals 1 if an earthquake took place in that province in the last five years. a. Should the researcher include province fixed effects in
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose a researcher believes that the occurrence of natural disasters such as earthquakes leads to increased activity in the construction industry. he decides to collect province-level data on employment in the construction industry of an earthquake-prone country, like Japan, and regress this variable on an indicator variable that equals 1 if an earthquake took place in that province in the last five years.
a. Should the researcher include province fixed effects in order to control for location specific characteristics of the labor market?
b. What can the researcher to control for the location effects?
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