Timeline for Regressing a function of independent variables on another function of independent variables
Current License: CC BY-SA 4.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jun 10, 2019 at 18:03 | comment | added | AlexK | @leecarvallo You can also include variables that affect the DV only, as that can make standard errors smaller. | |
| Jun 10, 2019 at 18:03 | comment | added | AlexK | @leecarvallo Your variable of interest appears to be the ratio of capital to labor. You should control for variables that are correlated with that ratio and with total expenditures. Think about your own budget again. Do your food expenditures affect the ratio between housing and transportation expenditures? It does not seem like that is necessarily true, but if it is, controlling for other expenditures makes sense. Same for customer demographics: it is a confounding variable if it affects both the dependent variable (DV) and the ratio. | |
| Jun 10, 2019 at 13:33 | comment | added | leecarvallo | And then if I include other expenditures, is there any need for other controls? If other controls, like customer demographics impact total expenditures, wouldn't this impact have to be through either the K, L, or other expenditures channels? | |
| Jun 10, 2019 at 13:26 | comment | added | leecarvallo | Regarding the first question you highlighted, if I think there is a conceptual correlation between either capital expenditures and other expenditures or labour expenditures and other expenditures, then I would have to control for other expenditures, right? | |
| Jun 10, 2019 at 12:59 | comment | added | leecarvallo | Ok, thank you for your response! | |
| Jun 9, 2019 at 22:50 | history | answered | AlexK | CC BY-SA 4.0 |