In Section 14.2, we discussed the fitting of the model where y=a+ B+ B+ Buls + Y-Tax
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In Section 14.2, we discussed the fitting of the model where y=a+ B+ B+ Buls + Y-Tax revenues as a percentage of gross national product in a country Exports as a percentage of gross national product in the country Income per capita in the country Dummy variable taking the value 1 if the country participates in some form of eco- nomic integration, 0 otherwiseThis provides a means of allowing for the effects on tax revenue of participation in some form of economic integration. Another possibility would be to estimate the regression Y = a + Bx; + Box + separately for countries that did and did not participate in some form of economic integra- tion. Explain how these approaches to the problem differ.
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