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An accounting and finance researcher wishes to study factors affecting firms' payout decisions. She collects accounting and financial data for a sample of UK firms for the period between 2000 and 2015.
1. Advise the researcher on how to develop an empirical specification for her regression model of payout (measured as total payout to total assets).
2. Outline the main methods that the researcher may use to estimate this model.
3. Given the fact that payout policies, particularly dividends, may be quite persistent, briefly discuss other appropriate model(s) and method(s) the researcher should use.
Write a critical response to the article related to tragedy of commons introduction to social science and economics
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