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I use state level data (one observation for each of the 50 states) to estimate a regression of the unemployment rate in the state on
I use state level data (one observation for each of the 50 states) to estimate a regression of the unemployment rate in the state on the duration of unemployment benefits in the state. If state governments change the duration of unemployment benefits in response to changes in the unemployment rate then the estimated coefficient will be biased
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
