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Suppose you have an annual dataset for a country which you want to use to analyse the effect of a certain policy. The country in
Suppose you have an annual dataset for a country which you want to use to analyse the effect of a certain policy. The country in question is governed by a parliamentary system whose government is elected every 4 years. There are 3 political parties that compete to win each election and it is believed that as a result policy effects are likely to be influenced by the election cycle. What sort of dummy variable will you use to capture this in your regression analysis
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