Dummy variables o a dummy variable is a variable that takes on the value 1 or o o Examples: male= 1 if are male, 0 otherwise), south(=l if in the south, 0 otherwise), etc o Dummy variables are also called binary variables for obvious reasons Economics 20- Prof andersonEconomics 20 - Prof. Anderson 2 Dummy Variables A dummy variable is a variable that takes on the value 1 or 0 Examples: male (= 1 if are male, 0 otherwise), south (= 1 if in the south, 0 otherwise), etc. Dummy variables are also called binary variables, for obvious reasons