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In this note we investigate the power of significance test for dummy-variables in the context of Simar and Wilson (2003) two-stage efficiency analysis model. Figure 1 . Estimated power functions for testing hypotheses that coefficients on continuous (dotted curve) and dummy (solid curve) variables are equal to zero, n=100 and n=200. FIGURESdoi:10.1080/13504850701578884 fatcat:utgoxu554jcvpbhm24k3ofgx2e