What model should I estimate\choose?

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What model should I estimate\choose?

Postby AfonsoRod » Fri Jan 05, 2018 10:13 am

Hello everyone.

So, I am very new and therefore very green in the Econometric world.
I'm also a master degree student in Economics and I need to perform an econometric paper for one of my classes.
So, I'm trying to study what are the main determinants on the price of water to the consumers, in the case of Portugal. For that I have data for 278 counties of Portugal and 7 variables. My dependent variable is, obviously, the price of water on the consumers, and my independent variables are the number of complaints received by the water provider entity, the percentage of complaints that were answered, two different variables that measure the quality of the good and the quality of the service, and a dummy variable that assumes the value of 0 if the provider entity is public and assumes the number 1 if the provider entity is private.
Besides studying the determinants on the price I will then try to understand what are the determinants for the quality, where I will, naturally, trade my dependent variable.

So, my question is....witch model should I use for each case, and what tests should I perform to make sure my model is correctly estimated? Also, if anyone has a suggestion of variables I should add to my model, I will also appreciate.

Thank you in advance for the help of all :)

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