... Applied Econometrics Dummy Variables 1Applied Econometrics Lecture 4: Use of Dummy Variables ‘Pure and complete sorrow is as impossible as pure and complete ... interaction is present or not. References Bao, Nguyen Hoang (1995), ‘Applied Econometrics’, Lecture notes and Readings, Vietnam-Netherlands Project for MA Program in Economics of Development. ... America. Written by Nguyen Hoang Bao May 22, 2004 Applied Econometrics Dummy Variables 5Workshop 4: Use of Dummy Variables 1) To help firms determine which of their executive salaries might...