Dummy Variables
Posted: Thu Aug 07, 2014 8:22 am
Dear all,
I am currently doing a research paper on the topic monetary policy and stock market volatility (using forward-looking model/ augmented Taylor rule). My prof has asked me to add a dummy variable to the regression model. What sort of dummy variable can I add? Was wondering if I could add recession indicators as a dummy variable but am not quite sure. Any thoughts?
Thanks!
I am currently doing a research paper on the topic monetary policy and stock market volatility (using forward-looking model/ augmented Taylor rule). My prof has asked me to add a dummy variable to the regression model. What sort of dummy variable can I add? Was wondering if I could add recession indicators as a dummy variable but am not quite sure. Any thoughts?
Thanks!