KInh tế ứng dụng_ Lecture 4: Use of Dummy Variables

The quantitative independent variables used in regression equations, which usually take values over some continuous range. Frequently, one may wish to include the quality independent variables, often called dummy variables, in the regression model in order to (i) capture the presence or absence of a ‘quality’, such as male or female, poor or rich, urban or rural areas, college degree or do not college degree, different stages of development, different period of time; (ii) to capture the interaction between them; and, (iii) or to take on one or more distinct values. ...

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