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Suppose that you are studying the effect of police officers on crime rates in several large American cities. When you estimate the model Crimei =
Suppose that you are studying the effect of police officers on crime rates in several large American cities. When you estimate the model Crimei = 1 + 1Policei + ui, you obtain a positive slope estimate. (a) What does your slope estimate imply about how the number of police officers affects crime? (b) Provide an example of an omitted variable that could explain why the slope estimate is positive.
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