dummy variable


Also found in: Encyclopedia, Wikipedia.

dummy variable

n
(Mathematics) a variable appearing in a mathematical expression that can be replaced by any arbitrary variable, not occurring in the expression, without affecting the value of the whole
Mentioned in ?
References in periodicals archive ?
In this regression, instead of directly using the dummy variable (green), we use the instrumental variable (green), which is the probability of choosing a green car that is estimated at the first stage to avoid the problem of the dummy variable being correlated with the residual term:
To develop the present research, we used a more comprehensive sample, with all categories of multimarket funds, and also other measures to estimate the premium lock-up: a dummy variable and the natural logarithm of the lockup period.
Using a sample of 55,193 director-firm-year observations, we estimate logit regressions in which the dependent variable is a dummy variable that equals one if a director attended fewer than 75% of a firm's board meetings during the past fiscal year and zero otherwise.
For estimating the effects of components [S.sub.i,t] and [U.sub.j,t], we consider time-variant dummy variables (i.e., a separate dummy variable for each year) for reporters and partners.
in which: [Sync.sub.it]: synchronicity of share i for period t; [D.sub.2006] to [D.sub.2015],: dummy variables that take the value 1 for the observations related to the respective years, and 0 for the other observations; M V: market values of the companies, for this variable the logarithmic scale was used; VOL: share trading volume, for this variable the logarithmic scale was used; Price_Book: ratio between stock price and net equity per share; ROA: return on assets; Ebit_Interest: ratio between earnings before interest and tax (Ebit) and financial expenses; Shareholder_Liquidity: stock market liquidity; Pref_Ord: dummy variable that takes the value 1 for preferred shares and 0 for ordinary shares; sector: company operating sector; [[epsilon].sub.t]: error term.
The SC model specification additionally contains a dummy variable for whether the fishing trip is taken with a private boat (PRIV) and the trip length (DAY).
In the regression analysis, the dependent variable is the CARs, and the independent variables are relative size, payment method, geographic dummy variable and dummy variable for each year.
We transform the continuous numeric restatement variable into two constructed variables; the occurrence of a restatement (dummy variable), and the magnitude of a restatement (absolute value of restatement variable).
The dependent variable TL refers to tough love behavior and it is specified as a dummy variable which is explained in the next section.
D4 = Dummy variable for Infrastructure (proper cut flower markets, electricity and flower display centers etc.).
where the dependent variable PRICE represents the deflated sale price of a unit; [alpha] is a constant; FLOOR represents floor level; GFA represents the gross floor area of a unit; AGE represents the actual age of the building; D1, D2, and D3 represent east-, south-, and west-facing aspects, respectively; TIME is a dummy variable delineating whether a transaction took place before or after the date of government resumption notice; ASSEMBLY is a dummy variable showing whether a flat is affected by land assembly efforts of the developers or their agents, as motivated under the Compulsory Sale for Redevelopment Ordinance; (40) DIVIDED is a dummy variable indicating whether a flat is divided into more than one subunit; e is the error term.