I am measuring the impact of distance to the nearest city on employment outcomes.
Y = b0 + b1*X1 + b2*X2 + b3*X1*X2 + controls + e
Thank you very much!
Y = b0 + b1*X1 + b2*X2 + b3*X1*X2 + controls + e
- Y is a binary variable.
- X1 is a categorical variable (income categories)
- X2 is an continuous endogenous variable (distance), instrumented by Z.
Thank you very much!
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