Over and over again, and then again, and then some more, we get asked about evidence for the role of public opinion for development. Where's the impact? How do we know that the public really plays a role? What's the evidence, and is the effect size significant? Go turn on the television. Go open your newspaper. Go to any news website. Do tell me how we're supposed to put that in numbers.
Here's a thought: maybe the role of public opinion in development is just too big to be measured in those economic units that we mostly use in development? How do you squeeze history into a regression model? Let's have a little fun with this question. Let's assume that
y = b0 + b1x1 + b2x2 + b3x3 + b4x4 + b5x5 + b6x6 + b7x7 + b8(x1x4) + b9(x3x4) + e