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Consider the regression of a county's crime rate on police expenditures: Crime = 1 +2Pol_Exp+u. We can estimate the correlation between these variable, but causation
Consider the regression of a county's crime rate on police expenditures: Crime = 1 +2Pol_Exp+u. We can estimate the correlation between these variable, but causation is difficult. Provide two different causal stories (X Y and Y X), as well as the expected sign (pos/neg)
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