regression results showing a positive association between crime and poverty (See Table3)” (p.14), and this means if economy becomes worse, then the crime will rise.
Table3. The result of “Crime and Poverty: Evidence from a Natural Experiment” (p.20)
This result suggests that if ‘sin tax’ makes our economy poorer by spending money in not a cost-effective way, then the crime will r
testing it by regression analysis, few variables had eliminated. Among the economic variables we added at the beginning, the labor participation is the only left one. The final model indicated that economic variables do not fully explain the high ration of suicide in Korea.
Therefore, the suicide rate in Korea has more association in aging society or divorce rate rather than labor participation
not have an absolute advantage. When each country exports the product in which it has a comparative advantage, all the countries engaging in trade would experience an increase in welfare.
The theory of ‘comparative advantage’ was a revolutionary idea at that time, and even today, its logic is used to support and promote global free trade.
2. Testing the Ricardian Model: Empirical Analysis
test of significance, ‘Visibility(p<0.01)’, ‘Comfort(p<0.01)’ are significant. We check multilinearity for knowing correlation between independent variables. If VIF>5, result is wrong. However, VIF of our result is less than 5. So there is not a high possibility of multicollinearity of independent variables.
B. Result of regression analysis of 158 samples' (that are adjusted for accu