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.

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
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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
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