Hi Everyone,
I am trying to evaluate the 2001 Portuguese drug law with regards to crime, using a difference in differences approach. I have collected data for 13 european countries for the period 1993-2007.
For one of my equations, the dependent variable is harmful_acts_rate which is a rate of violent crime per 100.000 inhabitants. One of the issues arising is the related to the fact that most of my independent variables are in per-capita terms. Meaning that the coefficients are spuriously significant, driven by the common population component in the dependent and independent variable. How can i solve this issue ?
Your help would be much appreciated.
I am trying to evaluate the 2001 Portuguese drug law with regards to crime, using a difference in differences approach. I have collected data for 13 european countries for the period 1993-2007.
For one of my equations, the dependent variable is harmful_acts_rate which is a rate of violent crime per 100.000 inhabitants. One of the issues arising is the related to the fact that most of my independent variables are in per-capita terms. Meaning that the coefficients are spuriously significant, driven by the common population component in the dependent and independent variable. How can i solve this issue ?
Your help would be much appreciated.
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