Questions tagged [economics]
The economics tag has no usage guidance.
43
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Aggregate Data using difference in difference method
I am trying to use a DiD method to examine the causal impact of a new government intervention, the establishment of a new entity to support domestic workers in the private sector, on the level of ...
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16
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Functional form for regression in a hedonic pricing model
I am doing a regression where I use the hedonic pricing model. Hedonic pricing treats a marketed good, usually a house, as a sum of individual goods (characteristics or attributes) that cannot be sold ...
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How do I determine whether there is a significant difference between two sets of price data?
I am conducting a study where I am collecting prices from two groups of funeral homes in a particular state: in the first group, the homes I collected prices from are owned by families, and in the ...
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How is Jack & Suri's (2014) study a difference in difference model?
I have a question about a study that I want to replicate, namely the study Jack & Suri (2014): 'Risk Sharing and Transactions Costs: Evidence from Kenya’s Mobile Money Revolution' (available here: ...
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17
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Cross-price elasticity of continuous products
The standard cross-price elasticity is the change in the quantity demanded for product A when the price of B changes.
It can be modeled (assuming linearity, WLOG), as
$$
q_A = \beta_0 + \beta_1 p_A + \...
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Correct posterior odds in Kahnemann and Tversky example
I am reading the article "judgement under uncertainty heuristics and biases", and in this article they present an example which should underline that people are biased in their evaluations ...
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1
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27
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How to test for the endogeneity between variables? which tests i should use?
my thesis is about measuring the impact of population growth on the economic growth in my country. However, i should test for the endogeneity between the variables chosen. for the dependent variable i ...
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97
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Distribution for the number of sales per day / time between each sale
Let's say customers can buy one single product in a store open 24/7, and that the time of day does not influence anything (sales are equidistributed along the day).
With which classical distribution ...
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St. Peterbourg paradox - expected value of both players
Im reading a paper by Karl Menger about the St. Peterbourg paradox (see below): his point is that the paradox does not rely on a mathematical expectation of infinite value, but on the discrepancy ...
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Computing an Exponential Moving Average
According to the Wikipedia page on moving averages, "This is also why sometimes an EMA is referred to as an $N$-day EMA. Despite the name suggesting there are $N$ periods, the terminology only ...
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How do you sample without a sampling frame?
I want to research the returns to education in my city as well as assess whether people who have studied abroad on average earn more than those who have studied within the country. The data required ...
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Do insignificant variables result in a specification error?
I am trying to understand omitted variable bais better. I know that it detects irrelevant variables, but are irrelevant variables and insignificant variables synonymous here? If I have a regression ...
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48
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Using Odds Ratio to Calculate Cost Savings
I am looking for some insight in offering some context to my odds ratios. I did a simple model estimating the relationship between the planting space afforded trees and the presence/absence of ...
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Why does this econ paper include time-invariant demographic measures in a fixed-effect model?
So I'm reading this recently published paper (2020): "Sources of Displaced Workers’ Long- Term Earnings Losses" (American Economic Review), and I'm puzzled why the authors included a "...
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Alternative for multicollinearity problem
I am a bit unsure how to specify my model and therefore look for some references / ideas.
I am interested in a model along the following lines:
$pay_i = \alpha + \gamma X_i + \beta pop_i + \epsilon_i ...
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1
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Conceptual Question about Effect Size
I have a couple of conceptual questions about Effect Size, hope someone can guide me here.
I am told that when I am designing my experiment and I want to establish sample size, I need to specify an ...
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1
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62
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How to make conditional quantiles?
I have a dataset consisting two variables X and Y. Both of them are of length 250. Now, I want to make conditional quantiles of X and Y. I have been reading the papers of Koenker and Basset (1978) and ...
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22
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Spatial data analysis
I want to use a probit model on the probability of occurrence of a social problem in which one determinant will be location. For this, I have data on locations where the problem is occurring. What ...
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96
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Collinearity in dataset, but I don't know why
I am trying to perform a logistic regression with the lm() function in R.
My model is: lm(xrd ~ VariableA*Post, data = DatasetXRD), this is a difference-in-differences model, the R code is based on: ...
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What kind of econometric models would be appropriate to determine the presence of a causal relationship?
I am conducting some econometric research on the impact of austerity on birth rates in the UK.
I would be using publicly available data from the UK government covering the number of births per year, ...
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Inputs not proxying for variance, but nevertheless well-correlated
In a summary of this behavioral economics article, it says
Our third finding is that cross-consumer heterogeneity in biases is
poorly explained by even a “kitchen sink” of other consumer
...
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I am a bit confuse about running a regression
I am a bit confuse about running a regression. Independent Variables are as:
X1 = Profitability Index
X2 = Operational Index
X3 = Cost per employee
X4 = Leverage Ratio
I am confused that can I use ...
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43
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Should I use fixed effects or first difference?
I have a panel data which N = 189 and T=3. My dependent variable is growth rate of GDP per capita. I wanted to know which model should I use in this case? Should I use fixed effects or first ...
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How to setup data properly for regression analysis to calculate price elasticity?
I am working on a project to try understand Linear Regression a bit deeper (they say experimenting is key and getting lost is part of the process) :(
In this project, let's assume I have a watch shop. ...
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What is the most suitable classical decomposition model for the time-series graph? [closed]
To decompose time series data using the classical decomposition method, we have additive as well as multiplicative model. What is the most suitable decomposition model to be used to decompose the time ...
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163
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2SLS approach using lagged dependent variable as an instrument
I was wondering if the lagged dependent variable can be a valid instrument or not.
In my data, policy intervention (x) is made depending on the outcome (y) in the past. (not depending on the effect (b)...
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19
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DiD by using a non-time dummy variable - Methodology Issue
I do have a theoretical question about a difference-in-difference (DiD) model I constructed in Stata.
Construction: Over a monthly time span of 7 years I try to analyze the impact of investment-volume ...
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2
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153
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Calculating sample size with power analysis
I have to calculate the sample size for an experimental study and took some sample distributions data from a previous similar research and calculated the means and standard variations for before and ...
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1
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2k
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How to test multicollinearity in Fixed Effects Model in R?
I was using plm package in R and run some pooling and fixed effects model. For ...
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1
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2k
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Using percentage change as a dependent variable?
If I use percentage change as my dependent variable what is the correct modeling method?
I am trying to see how the size of a company affects its losses due to COVID-19. I use quarter over quarter ...
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48
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Maximum likelihood estimate of rate of relative risk aversion in R fails [closed]
I try to estimate the relative rate of risk aversion gmma of a CRRA function using R. The likelihood maximisation either does not converge or produces an unrealistic estimate. In order to make the ...
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Contradicting Single Index model assumptions
http://www.columbia.edu/~gmg2/4706-00/pdf/lect_05nn.pdf
In the above paper there is that given the equation of the single index model,
Let $x_m$ denote the market index portfolio we have
$\bar R_m=...
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Can I use logistic regressions and least squares coefficients in a meta-analysis?
I am trying to write a Economics meta-analysis. The papers that I have collected so far contain a 50/50 split between OLS models and Logistic regressions (coefficients reported as odds ratios). If we ...
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How would I interpret a dummy variable and interaction term in this time series analysis using ARDL?
I'm doing an econometrics paper analyzing the impacts of oil price shocks on GDP growth. In one of my models, I use change in nominal oil prices, a dummy variable representing negative oil price ...
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Behaviour of two variables, where one variable is a ratio of another, in Labour Economics
I am trying to reproduce the result found in an old paper by Harvey S. Rosen, titled "Tax Illusion and the Labor Supply of Married Women Author", using a different dataset. The model that is ...
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Create composite index from right skewed data with extreme outliers
Do you have any advice for creating an index from right skewed-data with several extreme outliers.
I am new to creating indexes for analysis and could use some advice. So far I've done things like ...
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how to model price elasticity
I'm trying to model price elasticity based on price changes and I'm wondering what is the best way to do it.
My data is at at the individual customer level and there's a 0/1 indicator for whether they ...
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Using ratios and the numerator as explanatory variables in regression analysis with fixed effects
I am running a fixed effects regression analysis with a ratio of number of sellers per capita and the number of sellers as explanatory variable on its own. How should I interpret the results?
My ...
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What would a suitable justification be to use 'log(exports)' as a dependent variable instead of solely 'exports'? [duplicate]
I am doing a diff-in-diff analysis, looking at whether a regulation had an impact on British pollution-intensive exports. Initially I used 'total exports of pollution-intensive goods' as my dependent ...
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1
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164
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Maximum likelihood estimation using R [closed]
I have a multiple linear regression, that I want to estimate using a MLE approach. I would like to make the fit using a Beta distribution, with parameters u and v. How can I do this using R?
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339
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What do all the distributions that have the same Gini index have in common?
According to the Wikipedia article about Income inequality metrics, Gini index have the next disadvantage:
As a disadvantage, the Gini index only maps a number to the properties of a diagram, but the ...
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Unrealistic results in Gpinter
I have tho following wealth tax statistic from which i want to do a Pareto interpolation using gpinter.
From this table i have extracted the percentails, their corresponding thresholds and bracket ...
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How to control for population change when studying regional employment by sector?
I want to examine regional changes in employment by sector. However some regions have shrinking population and even when the economy is triving, it still shows that employment is falling, but ...
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