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Justify the models. What effect do you expect each of the independent variables to have on the dependent variable?


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Write a short paper interpreting the results, addressing the following points.
A. Justify the models. What effect do you expect each of the independent variables to have on the dependent variable? (Your expectation may differ from the estimated relationship).
B. Discuss your results. Do your results correspond with the expectations discussed in part A? Which results are statistically significant? Are your findings sensitive to model specification (log/log or linear)?
C. Does the introduction of the regional dummy variables change the results for the remaining independent variables? Discuss any substantial changes. Interpret the regional dummies.

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