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A Numerical Example of the Practical Use of Dummy Variables

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  • Sappington, Charles

Abstract

Although the use of dummy variables in regression analysis is quite common, the implications of alternative models for incorporating dummy variables are not generally understood. References dealing with the use of dummy variables are numerous but scattered in the literature. The purpose of this article is to demonstrate, using numerical examples, the implications and interrelationships among various models which incorporate dummy variables. Five separate models are considered.

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  • Sappington, Charles, 1970. "A Numerical Example of the Practical Use of Dummy Variables," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 2(1), pages 197-201, December.
    • Handle: RePEc:cup:jagaec:v:2:y:1970:i:01:p:197-201_01
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    Cited by:

    1. Nichols, John P., 1972. "An Evaluation Of Market Order Grade Changes Using Covariance Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 4(1), pages 1-5, July.
    2. Kuehn, John P. & Hamer, E. James, 1978. "Alternative Representations Of Dummy Variables And Their Interpretations," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 7(1), pages 1-7, April.

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