OLS with interaction terms

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OLS with interaction terms

Postby kirdid123 » Fri May 25, 2018 10:11 am


I am doing an assignment where i need to compare factors deciding houseprices in two different cities. I need some help how to construct the model to be able to analyse the factors effect on prices for each city in one model.

I have data for each cities price development and the factors data for each city and i have four independent variables with data for each city.

How many dummy variables do I need along with interaction terms to be able to compare the effects of each factor on the prices for each city.

Hope it was not to confusing,

Happy for any tips or thoughts.


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