Advantages to the dummy variable approach 1. Instead of running three regressions (7.54),(7.55), and(7.56)under the Chow test, in the dummy variable approach all we have to do is to run just one regression 2. From the differential dummy and intercept coefficients, we can point out the source() of the differenceAdvantages to the dummy variable approach. 1. Instead of running three regressions (7.54), (7.55), and (7.56) under the Chow test, in the dummy variable approach all we have to do is to run just one regression. 2. From the differential dummy and intercept coefficients, we can point out the source(s) of the difference