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🪵 The Threshold

Adding city controls and province fixed effects raises the model's explained variance to 0.585.

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tagsja-picks, define, question, craft_and_method, trade, singleton, category/craft-and-method
aliases@doerr_financial_2021, loc. 257

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Adding city controls and province fixed effects raises the model’s explained variance to 0.585.

Evidence

Observations 196 196 196 194 204 189 R-squared 0.039 0.500 0.585 0.443 0.412 0.491 City Controls - ✓ ✓ ✓ ✓ ✓ Province FE - - ✓ ✓ ✓ ✓ (1) (2) (3) (4) (5) (6) dep. — Sebastian Doerr et al., Financial Crises and Political…, 257

Categorization

  • DEFINE: The R-squared ladder (0.039 to 0.585) shows the Danat dummy alone explains almost nothing until controls and province FE absorb heterogeneity.
  • QUESTION: With province FAbsorbing so much variation, do the coefficients depend heavily on within-province comparisons?
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