You want to find the determinants of suicide rates in Turkey. To investigate the issue, you specified the following model (i refers to region and t refers to year) YBo+ByXq + Regional Dummies + u where Y, is the suicide rate and X, contains only the unemployment rate but no year dummies. Using OLS, you find no significant relationship between suicide rates and unemployment rate variable. Which of the followings can explain this result? Yanıtınız: There is no causal relationship between suicide rate and unemployment There may be regional fixed effects, which are in the error term, that are correlated with unemployment rate 12Lack of interaction variables between regional dummies and unemployment rate. Regional dummies are correlated with unemployment rate the error term that are correlated with unemployment rate.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
icon
Concept explainers
Question
You want to find the determinants of suicide rates in Turkey. To investigate the issue, you specified the following model (i refers to region and t refers to year)
Bo + B,X, + Regional Dummies + u,
where Y, is the suicide rate and X, contains only the unemployment rate but no year dummies. Using OLS, you find no significant relationship between suicide
rates and unemployment rate variable. Which of the followings can explain this result?
Yanıtınız:
There is no causal relationship between suicide rate and unemployment
* There may be regional fixed effects, which are in the error term, that are correlated with unemployment rate
Lack of interaction variables between regional dummies and unemployment rate
Regional dummies are correlated with unemployment rate
There may be year effects. which are in the error berm that are correlated with unemployment rate
Transcribed Image Text:You want to find the determinants of suicide rates in Turkey. To investigate the issue, you specified the following model (i refers to region and t refers to year) Bo + B,X, + Regional Dummies + u, where Y, is the suicide rate and X, contains only the unemployment rate but no year dummies. Using OLS, you find no significant relationship between suicide rates and unemployment rate variable. Which of the followings can explain this result? Yanıtınız: There is no causal relationship between suicide rate and unemployment * There may be regional fixed effects, which are in the error term, that are correlated with unemployment rate Lack of interaction variables between regional dummies and unemployment rate Regional dummies are correlated with unemployment rate There may be year effects. which are in the error berm that are correlated with unemployment rate
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Correlation, Regression, and Association
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman