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5. The following equation represents the effects of tax revenue mix on subsequent employment growth for the population of counties in the United States: Model

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5. The following equation represents the effects of tax revenue mix on subsequent employment growth for the population of counties in the United States: Model (1): growth = Be + B, share,+B share,+B shares +B share, + otherfactors +u, where growth is the percentage change in employment from 1980 to 1990, share, is the share of property taxes in total tax revenue, share, is the share of income tax revenues, and share, is the share of sales tax revenues. All of these variables are measured in 1980. The omitted share, share, includes fees and miscellaneous taxes. By definition, the four shares add up to one. Other factors would include expenditures on education, infrastructure, and so on (all measure in 1980). (1) Model (1) clearly violated one of Multiple Linear Regression assumptions, please indicate. (5%) (2) Please rewrite the model (1) so that the violated assumption indicated in (1) is satisfied. (5%)

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