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) Y = Bo + B1X, + Year Dummies + u, where Y, is the suicide rate and X, contains only the unemployment rate but no regional dummies. Using OLS, you find no significant relationship between suicide rates and unemployment rate variable. Which of the followings can explain this result? Your answer: O There may be year effects, which are in the error term, that are correlated with unemployment rate. O Lack of interaction variables between year dummies and unemployment rate. O Year dummies are correlated with unemployment rate O There is no causal relationship between suicide rate and unemployment

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) Y = Bo + B1X, + Year Dummies + u, where Y, is the suicide rate and X, contains only the unemployment rate but no regional dummies. Using OLS, you find no significant relationship between suicide rates and unemployment rate variable. Which of the followings can explain this result? Your answer: O There may be year effects, which are in the error term, that are correlated with unemployment rate. O Lack of interaction variables between year dummies and unemployment rate. O Year dummies are correlated with unemployment rate O There is no causal relationship between suicide rate and unemployment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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