Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Let's add another control to your regression in an attempt to obtain more reliable estimates of the effect of campaign spending. As you may know,

Let's add another control to your regression in an attempt to obtain more reliable estimates of the effect of campaign spending. As you may know, 2018 was a good year for Democrats in House elections.

a) Is the overall good performance of Democrats in 2018 a potential confounder in your regression? Why or why not?

b) Create a new variable indicating whether the incumbent is a Republican - call it republicanincumbent. It should take a value of 1 if the incumbent is a Republican and a value of 0 if the incumbent is a Democrat. Now re-run your regression, but include that variable as a control. What is the coefficient on this variable? Interpret what the coefficient means.

c) Does including this control variable meaningfully change your estimated coefficients of interest (i.e. the coefficients on incumbent and challenger spending? Why or why not, do you think?

Display keyboard shortcuts for Rich Content Editor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Linear Algebra with Applications

Authors: Bernard Kolman, David Hill

9th edition

132296543, 978-0132296540

More Books

Students also viewed these Mathematics questions