I am writing a paper on the unemployment rate with regression analysis. The unemployment rate is my dependent variable. I figure labor market congestion, natural rate of unemployment, seasonal unemployment rate, cyclical unemployment rate, lag time of finding a new job are some of my independent variables. However, I am not just looking at the unemployment rates I am also adding variables of my own to find the effects of sports facilities on the unemployment rate. Variables such as announcement of construction, during construction, after construction, and the fan attendance. Any suggestion on what other variables I could include? And am I on the right track??
My Equation thus far:
Unemp Rate= beta0+beta1(LabMCOng)+beta2(lagtime)+beta3(NatUnemp)+
beta4(seasURate)+beta5(cycURate)+beta6(AnnC)+beta7(DurC)+beta8(AftC)+beta9(Fan Att)+ Error term
So far your equation looks fine. I assume that by "during construction" you mean the unemployment rate at this time. This would be time series data, as opposed to cross sectional. Time series data are acquired over a period of time, for example on a monthly basis. Cross sectional data would take a snap shot of the statistic at one point in time. Times series data can be tricky. For example, you need to be concerned with time ...
Development of regression analysis to determine effects of sports facilities on the unemployment rate
Time series model for unemployment rate
Time Series Analysis
THE FOLLOWING TIME SERIES DATA REPRESENTS THE MEAN YEARLY US UNEMPLOYMENT RATE BETWEEN JANUARY 1981 AND OCTOBER 2008 (OBTAINED FROM THE U.S. BUREAU OF LABOR STATISTICS):
Year U.S. Unemployment Rate (%)
A) Plot the time series on a line chart and show the trendline for unemployment rate. [Use Megastat, Correlation/regression, scatterplot].
B) Does the trend line show an increase, decrease or no change in the unemployment rate during 1981-2008?
C) Determine the linear regression equation for the time series.
D) Estimate unemployment rate for the next five years.