We are analyzing the effects of regime type on corruption with the following model: Corruption = 10 – 0.1GDPpc - 2.0Democracy where Corruption is an index of corruption, GDP (per capita) is measured in thousands of dollars, and Democracy is a dummy variable that is equal to one if a country is a democracy and 0 otherwise. What is the predicted corruption index of a democratic country with a per capita GDP of $49,000? Enter your answer with one decimal place.

We are analyzing the effects of regime type on corruption with the following model: Corruption = 10 – 0.1GDPpc - 2.0Democracy where Corruption is an index of corruption, GDP (per capita) is measured in thousands of dollars, and Democracy is a dummy variable that is equal to one if a country is a democracy and 0 otherwise. What is the predicted corruption index of a democratic country with a per capita GDP of $49,000? Enter your answer with one decimal place.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Public Choice And Special Interest Group Politics

Section: Chapter Questions

Problem 2QP

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