On the Use of Regression Analysis With a Qualitative Dependent Variable

Abstract

Akin, Fields, and Neenan have attempted to provide a socioeconomic explanation of consumer attitudes toward budgetary actions by applying regression analysis to the results of a consumer survey. Each of their four regression equations has as its dependent variable the coded responses to one or more survey questions dealing with actual or potential government policies. The system used to code these responses embodies very special and highly restrictive definitions of the attitudes which the authors seek to explain, and, more importantly, the empirical results obtained may not apply to any but these very narrow operational definitions.