Questions tagged [economics]

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log log model to estimate elasticities for 0 demand/dependent variable

Many of you will be familiar with the use of the log log linear regression model to estimate elasticity. I am in this situation where I can get zero demand, the dependent variable, which obviously ...
cs0815's user avatar
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Controlling for Time-Varying Work Factors in Dynamic DID Analysis: Handling Staggered Adoption of Child Care Leave

I'm working on a dynamic Difference-in-Differences (DID) analysis to assess the impact of child care leave on individuals' wages over their working life. My database includes information on the date ...
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Undergraduate econometrics - linear model

I have the following model which I am trying to understand: $y_i=\beta_0+\beta_1 x_{1i} + \beta_2 x_{2i}+ u_i \sqrt{x_{2i}}_i$ where: $u_i\sim i.i.d.N(0,\sigma^2)$, $x_{1i}=x_{2i}+\epsilon_i$, $\...
Katharina K's user avatar
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Test serial correlation for panel data

I have a set of panel data (including variables X1, X2, X3. and N=193; T=22) these variables are used as independent variables in the model. I want to check the autocorrelation of each of these ...
Huy Lê Thanh's user avatar
3 votes
1 answer
99 views

Building the best proxy for an economic indicator

I've been asked to help people from the Economics Department with an index A which is a geographically restricted GDP. This index was expensive to calculate, so they have data on it only for 1993-1999 ...
hamath's user avatar
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Maths Questions - Probability distribution of choices

I need help with a question I am trying to work out: Individuals have 5 choices: Choice 1: utility1 = alpha * R1 + beta * C1 + random_shock_1(mu=0,sig=1) Choice 2: utility2 = alpha * R2 + beta * C2 + ...
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Midas regression with different variable lenghts? Can it work?

I want to estimate quarterly GDP using monthly data with midas regression. The thing is one of my variable has observations from 2014 to 2023 while the other two from 2005 to 2023. Can I estimate this ...
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CPI inflation index calculation

I have a question about calculating the rate of inflation between two time periods using the CPI index, generally, if I am interested in comparing the rate of inflation between a current year 2022 and ...
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3 answers
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Why is the sample size required peaking at 16600ish for higher levels of population size?

I was calculating the no. of people I need to survey to represent my fairly large population. I used an online calculator: https://www.surveymonkey.com/mp/sample-size-calculator/ When I entered the ...
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AIC calculation

Our object is calculating AIC, and we are unsure whether we can use our measure below when calculating AIC. The following are the data from the experiments and our method to calculate the information ...
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Interpet coefficient estimates with log(Y) in rdrobust package

1.I want to interpet the coefficients of RDD model above. The dependent variable is log-transformed. Should it be the same as linear regression even though I am using local polynomial regression with ...
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4 votes
1 answer
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Censored Regression model

I am considering the following censored regression model. I have a question about my R code. Then I obtain likelihood function as follow. Then i obtain log-likelihood function. ...
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How to analyze the effect of an exogenous variable on multiple financial variables in a model in R?

I am working on a financial analysis project where I have a dataset with daily observations for all variables from 2000 to 2023. The dataset includes an exogenous variable 'Y' and four financial ...
Marco Berti's user avatar
2 votes
0 answers
28 views

Can we see relationship between two index variable

In multiple linear regression model can I use dependent variable as index (composite food security index) and also one independent variable as index. For example livelihood vulnerability index for ...
abhi sarker's user avatar
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investigating the economic impact on transport infrastructue investment in south africa

investigating the economic impact on transport infrastructure investment in south Africa. this is the mini dissertation research in 2023
asavela's user avatar
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How can I read the output of a Koyck test in R?

I just ran a Koyck test on my data, and I got this as an output - I'd like to understand why Y.1 and X.t are significant and what they being significant mean. I also don't know what other information ...
María José Otero Arango's user avatar
1 vote
0 answers
231 views

Difference-in-differences with monthly data where the previous untreated year is used as the control group

I recently came across a setup of differences-in-differences which I have previously wondered about, but had not seen before in a published study. Consider the following setting: Outcome: measured at ...
Newbie's user avatar
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"Inverting back" the inverted supply equation in an ECM. Possible?

I am estimating a time series 2SLS, ECM model, for electricity consumption. The system has a demand equation: The price is endogenous in the demand equation, and therefore, I also estimate a price ...
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1 answer
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Price elasticity of demand estimation with single store level data

I have weekly data per single SKU and for more than 500 point of sales. Data embeds base price, quanity sold, holidays, temperature, market activities (cut-price, display, leaflets) and so on. I want ...
Matteo's user avatar
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1 vote
0 answers
166 views

Calculating total revenue in Rstudio (price*quantity sold) [closed]

Hello everyone, I need to work with the data presented above. This question involves a little bit of knowledge of Rstudio. I would (1) like to obtain total revenue PER product (ucp), and brand, (2) ...
René González's user avatar
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102 views

Time Varying Difference in Differences Model

If I am looking at the impact of different tariffs in different months on exports, can anyone tell me if this would be the correct difference in differences model? Or would it be
kz500's user avatar
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Fixed-Effects Correlated with Another Dummy

Question regarding convention in econometrics. Suppose I am running a two-way Fixed Effect (FE) model on a District-Year panel. Year varies from 2000 to 2010. Suppose I want to examine the effect of ...
RandomQuestion310's user avatar
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87 views

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 ...
whoknows's user avatar
2 votes
1 answer
227 views

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 ...
Nola's user avatar
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1 answer
271 views

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 ...
Ganna's user avatar
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1 vote
1 answer
843 views

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 ...
Basj's user avatar
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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 ...
user305883's user avatar
1 vote
0 answers
105 views

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 ...
user345010's user avatar
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1 answer
706 views

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 ...
NoLifeKing's user avatar
1 vote
0 answers
24 views

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 ...
rabito's user avatar
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1 vote
1 answer
86 views

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 ...
Andrew Koeser's user avatar
1 vote
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45 views

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 "...
Anna Bokun's user avatar
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58 views

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 ...
stats_noop's user avatar
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1 answer
20 views

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 ...
statsnoobj101's user avatar
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1 answer
193 views

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 ...
Rohit Singh's user avatar
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0 answers
25 views

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 ...
Ipsita's user avatar
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0 votes
1 answer
207 views

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: ...
StatisticsinRrr's user avatar
1 vote
2 answers
69 views

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, ...
ExploringData's user avatar
3 votes
1 answer
15 views

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 ...
Eric Auld's user avatar
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1 answer
35 views

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 ...
Abdul Khaliq's user avatar
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0 answers
190 views

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 ...
Frank Wood's user avatar
0 votes
1 answer
3k views

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. ...
umm's user avatar
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1 vote
0 answers
27 views

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 ...
Anonymous M's user avatar
2 votes
0 answers
339 views

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)...
Yendao Su's user avatar
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0 answers
23 views

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 ...
Shorty20's user avatar
1 vote
2 answers
477 views

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 ...
randomname's user avatar
2 votes
1 answer
4k views

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 ...
Aru Bhardwaj's user avatar
2 votes
1 answer
4k views

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 ...
Harry Harrington's user avatar
1 vote
0 answers
67 views

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 ...
FicusBenji's user avatar
1 vote
1 answer
76 views

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=...
Anna's user avatar
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