Use the below table to answer the following questions.

Table: Impact of growth on civil conflict

Probability of civil conflict

(1) (2)

% change in GDP -0.285 ** -0.168 **

(0.0954) (0.0829)

Population 0.71

(0.515)

Per capital GDP in previous year 0.91 ***

(0.0215)

Constant 1.82 0.57

 (0.0239) (0.2648)

Regression Table: Coefficient

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Look at the regression table above. Controlling for population and per capita GDP in
the previous year, a 10% increase in GDP is associated with a _________ in the
probability of civil conflict.

A. 1.68 percentage point increase

B. 16.8 percentage point increase

C. 1.68 percentage point decrease

D. 16.8 percentage point decrease

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Regression Table: T-Test

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The change noted above is statistically significant at the 5% level.

A. True

B. False
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Regression Table: IV
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Some perceptive critics point out that while economic growth might affect the
probability of civil conflict, civil conflict can in turn affect growth. In order to deal with
this problem - known as endogeneity - one could potentially use variations in rainfall
as __________ (select all that apply).

A. An exogenous source of variation in growth

B. An instrumental variable for economic growth
C. An instrumental variable for civil conflict
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