I have the following problem:
y= intercept + y(-1)+ x1 factors + x2 factors which the literature models using dynamic panel models (since y depends on its lagged value)
y(-1) is the lagged y variable
x1 factors are firm specific
x2 factors are macroeconomic factor
I want to...
Y= alpha+ b1*x1 + b2*x2 + b3* x3 +b4*x4 + b5*dummy1*x1+b6*dummy1*x2 + b7*dummy1*x3 +b8*dummy1*x4
I run the correlation between all the regression variables and I found that all variables that are multiplied by dummy1 are highly correlated (correlation can reach up to 0.77). is this normal...
I have a sample that consists of large, medium, and small firms and i want to run a separate regression for each size group. When I winsorize a variable should I do it for the whole sample (i.e. select the variable in the whole sample) or for each size group alone (i.e select the large firm...
Attached you will find a well known research paper. If you go to page 438 (page 9 of the pdf file) you will find a model where:
change in tax rate = b1xMiss + b2x Miss Amount +b3(Miss x Miss Amount) + controls
according to the model , firms play with their accounts in order to pay less...