* Dummy Variables - The University Effect on House Prices * Reference: Section 9.4 of * R. Carter Hill, William E. Griffiths and George G. Judge, * Undergraduate Econometrics, Second Edition, Wiley. * SAMPLE 1 1000 READ (TAB9-1.shd) PRICE SQFT AGE UTOWN POOL FPLACE / SKIPLINE=1 * Generate an interaction variable GENR USQFT=SQFT*UTOWN * Estimate a price equation - Table 9.2, p.204 OLS PRICE UTOWN SQFT USQFT AGE POOL FPLACE * Estimate the price per square foot for houses near the university. * On the TEST command the variable names represent the coefficients TEST SQFT+USQFT * Estimate the price per square foot for houses in other areas TEST SQFT STOP