TABLE 14-13 An Econometrician Is Interested in Evaluating the Relationship of Demand

question 91

Short Answer

TABLE 14-13
An econometrician is interested in evaluating the relationship of demand for building materials to mortgage rates in Los Angeles and San Francisco. He believes that the appropriate model is
Y = 10 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 1 if SF, 0 if LA
Y = demand in $100 per capita
-Referring to Table 14-13, holding constant the effect of city, each additional increase of 1% in the mortgage rate would lead to an estimated increase of ________ in the mean demand.

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Definitions:

Homophily

The tendency of individuals to associate and bond with similar others, which can include similarities such as age, gender, social class, and beliefs.

Phinney's Second Stage

Part of Phinney’s model of ethnic identity development, focusing on the exploration of one’s own cultural heritage and values.

Ethnic Identity

A person's sense of belonging or identity in relation to the social, cultural, or national group they identify with.

Oppositional Identity

A concept explaining how individuals may define themselves in contrast to societal norms or dominant groups.