Questions tagged [applied-econometrics]
Use this tag to discuss empirical papers and issues arising when applying theoretical models to data.
131
questions
6
votes
2answers
263 views
Cobb-Douglas production function with expenditures rather than units
I want to estimate a standard Cobb-Douglas production function of the form
$ Y=AK^{\alpha}L^{\beta}$. However, I only have data on labour expenditures, not units of labour. I don't have data on the ...
0
votes
0answers
15 views
treatment of non-consecutive periods in panel and ʀ SFA
ɪ am estimating a Stochastic Frontier Analysis (SFA estimated by MʟE) model for a panel of seven periods. ɪ want to know if ɪ can use all the periods in the estimation procedure and how are they ...
2
votes
1answer
19 views
Is measurement error in self-reported health a problem in this scenario…?
I am running regressions to estimate the impact of health conditions on life satisfaction.
I have read a paper that showed that there is likely to be measurement error in the self-reported health ...
1
vote
1answer
54 views
What is the interpration of results if adding or subtracting a control variable effects the significance of explanotary variables?
I am conducting some regressions on economic growth determinants and I am disillusioned. Essentially by choosing what groups of variable to regress I can get the desired significance. What does this ...
2
votes
0answers
26 views
Regression analysis with interaction and decomposed main effect
I'm trying to figure out if I need to include the main effect in a regression analysis with an interaction if I am already including a decomposed version of the main effect.
For example, let:
...
0
votes
1answer
26 views
Building a time-series demand forecasting model
I am forecasting demand for certain types of goods and services, which I expect to be correlated to a sub-set of a basket of macroeconomic indicators (considering 15-20 indicators)
I do not know ...
1
vote
0answers
19 views
Estimating CES utility (not production) function parameters
The CES utility function has the form
\begin{equation}
u(x_1,\dots,x_n)=\left[\sum_{i=1}^n\alpha_ix_i^\rho\right]^{1/\rho},
\end{equation}
where $\alpha_i$ is the consumption share parameter and $\...
0
votes
1answer
35 views
is there a difference between E[e|x]=0 and E[e|d=1]-E[e|d=0] in continuous vs discrete case in regressions?
in the discrete case, if assignemt is random, then i can express E[y|d=1]-E[y|d=0] = B + E[e|d=1]-E[e|d=0], where the expectation of the errors are the same for both groups and become zero. Where I am ...
0
votes
0answers
23 views
Should I include lags in an LLC unit root test?
I have panel data (N = 10, T = 20), which I intend to run a series of regressions on. I first want to see if my data are stationary in levels or in differences. To do this, I have been performing ...
1
vote
1answer
33 views
How to predict income n years after graduation using income dataset with age, but not graduation year?
I'm trying to predict the income of graduates of certain Master's programs n years after graduation, using the American Community Survey individual level dataset to calibrate my equation. It gives me ...
0
votes
2answers
72 views
Why hasn't the huge increase in supply provided by Airbnb decreased prices?
Simple supply and demand economics would suggest that the huge increase in the supply of rooms to rent by Airbnb should have reduced the price of rental significantly in those cities where Airbnb is ...
0
votes
0answers
13 views
Engel’s Coefficient Data
Does anyone know of any good data sources where we can find Engel’s Coefficients by nation?
0
votes
0answers
24 views
Econometrics: Is it feasible to use the “effect of the treatment” estimations from a diff-in-diff as dependent variable?
Basically I have many treated units and I would like to estimate (by applying the Diff-in-Diff methodology) the effect of the treatment.
In my particular case it's very likely to observe certain ...
0
votes
0answers
31 views
Vector Autoregressions
Suppose running a VAR system featuring the central bank interest rate, inflation and GDP.
Start by estimating each equation by OLS. How should you interpret the OLS residuals to these equations?
My ...
0
votes
0answers
18 views
Mankiw, Romer & Weil: Estimating Implied Alpha & Beta
I am replicating Mankiw, Romer & Weil (1992) with data from 1995 through 2015, and I wondering how they estimated the implied alpha and beta.
Thank you,
For those curious, the paper can be found....
3
votes
1answer
660 views
What is a good proxy for government quality?
Is it ok to use corruption as a proxy for government quality?
-1
votes
1answer
44 views
When using OLS is it always necessary to drop the weak and insignificant variable? [closed]
Some of my variable shows weak collinear relationship on my dependent variable.. how should I address this?
0
votes
0answers
22 views
VAR model OLS line by line
I am estimating a VAR model line by line.
Lets say the conditional variances are correlated.
We would expect size distortion. So we would use another method, perhaps a HAC standard error to account ...
0
votes
0answers
28 views
How should I rebase my GDP?
I have a constant GDP data from 1988 to 2009 in constant 1985 prices and GDP data from 2009 to 2017 in constant 2000 prices. My question is how should I rebase my GDP?
Upon searching the web, i don'...
3
votes
1answer
73 views
Synthetic Control Method
I need to study Synthetic Control Method for my term paper. So can anyone suggest some book/literature from where I can study Synthetic Control Method on my own?.
0
votes
2answers
45 views
What is the tolerable level for multicollinearity? and possible remedial measures for it?
My data has issues of multicollinearity. Upon estimating, I found out that my data have high levels of VIF In however I was confused as to what level of VIF can I possibly ignore the issue of ...
0
votes
0answers
9 views
Transformation of cutpoints in Ordinal Probit/Logit regression
The likelihood for an ordinal probit/logit regression model is given as -
$f(y|\beta ,\gamma ,z ) = \prod_{1}^{n} \left [ \Phi (\gamma _{j} - x_{i}'\beta ) - \Phi (\gamma _{j-1} - x_{i}'\beta ) \...
1
vote
1answer
36 views
How do I fill gaps in my data?
In my study, I have 5 independent variables which contains 21 observation each. However one of my independent variables have 3 gaps. What should I do?
e,g
I would need to know the effect of ...
2
votes
0answers
29 views
How to control for population in Difference-in-Difference?
Random example, but let's say I'm examining the effect of a health program on influenza cases in India. They just randomly start the program in 7 of the 29 states. I have data on the number of flu ...
0
votes
0answers
22 views
Error Correction Model with two independent (control) variables [duplicate]
Is it possible to build an Error Correction Model with two independent ( control) variables? I mean with one dependent variable, and two independent variables.
If yes, what are the assumptions/...
0
votes
0answers
29 views
Error Correction Model with more than one independent variables
I was wondering if it is possible to set up an Error Correction Model with two independent variables (one dep var, and two indep vars)?
If yes, what are assumptions/conditions to be met?
In the ...
2
votes
0answers
42 views
Difference-in-differences with long time horizon and repeated treatments
I have a high-frequency panel dataset on the order of $i=150$ and $t=5000$. I am interested in studying the causal impact of a treatment with the following characteristics:
The same unit can be ...
1
vote
0answers
16 views
primary impact on real estate prices/taxes
Are my housing prices/taxes more influenced by the $40M beach house a few miles away from my home or those in the lower-class well beyond my county line?
Assuming a few basics:
there are differing ...
1
vote
1answer
31 views
Exchange rate volatility
Colleagues,
I have started an analysis on spatial econometrics models, and looking for data to compute an exchange rate volatility. My variables to construct the weight matrices are all bilateral ...
1
vote
0answers
16 views
To the following data, what kind of econometric analysis can be conducted/ or what type of relationship can be established? [closed]
I have data for sale in petroleum products across different states in India of both public sector and private sector companies for past 10 years.
No. of years - 2008 to 2018 monthly data for 10 years
...
1
vote
0answers
15 views
How do I measure effects over years in panel data with individuals?
I'm working with a longitudinal panel dataset that surveys the same few thousand individuals biennially and I have six years of this data. My dependent variable would be how much individuals spend on ...
1
vote
0answers
187 views
Coming up with a Research Topic for Undergraduate Paper
I am currently a senior in economics, and I have been pondering ideas for doing a research paper. Sometimes I go about thinking theory and trying to find applications I could apply it to empirically, ...
2
votes
1answer
48 views
Minimum sample size for cross-sectional RDD
I haven't done a regression discontinuity design (RDD) before. I know it requires a large sample size for identification, thus I fear that my sample size is not large enough.
The study is cross-...
0
votes
1answer
41 views
Help with undergrad econometric project
I am working on undergrad research in econometrics and am seeking some advice/help in terms of finding data sets and picking variables. I have an idea chosen for my topic, but I need to make a ...
0
votes
1answer
74 views
What is an unconditional model for a time series variable?
If I am being asked to do an unconditional analysis of a time series variable, lets say GDP starting in 2000, what model am I supposed to estimate?
2
votes
0answers
37 views
Any examples of non-parallelism making Diff-in-Diff estimation biased?
The key assumption in a Differences in Differences design is that both the control and the treatment group have parallel tendencies, that is, they'd follow similar paths over time if there was no ...
1
vote
1answer
64 views
What are the identification problems in measuring peer effects?
I am currently writing my bachelor thesis on peer effects. However, the more I read about the identification problems (I read e.g. Manski, Moffitt, Angrist, Goldsmith et al.), the less I understand. I ...
1
vote
0answers
16 views
Empirical implementation of Milbourne et al's 2003 model of growth for time series data
I'm interested in testing the relationship of public investment in human capital and infrastructure, and the rate of growth of the GDP for Colombia, during a 20 years period. Given that I'm only an ...
1
vote
0answers
31 views
How are rotation matrices used in structural VAR identification through sign restrictions?
I saw this identification method is used in several working papers but to me it is impossible to understand how it works by simply reading them.
I have searched many books and lecture notes in order ...
-1
votes
1answer
41 views
Is health care equal in the emergancy room? [closed]
How does financial status dictate the level of care differ? Where can you find the best healthcare income to medical service rendered?
I understand that health care differs depending on a ...
1
vote
0answers
227 views
Difference between multinomial logit and conditional logit
I'm trying to decide whether to run a multinomial logit or a conditonal logit (McFadden, 1973). I have data from a choice-based conjoint study in which each of the respondent's choices was between a ...
1
vote
0answers
34 views
Discrete choice model without outside option?
In most empirical studies of discrete choice, the presence of an outside good is assumed.
Can you give an example of a (well published) empirical paper, where there is no outside good and thus ...
1
vote
0answers
47 views
Panel econometrics for marketing mix analysis: how to include spending that affects all the individuals of a panel?
Dear stack exchangers,
in the course of an internship at a microfinance bank in Tajikistan, I have been tasked with assessing the efficiency of different marketing expenses.
I will try to expose the ...
5
votes
2answers
132 views
Research at the county-level: Macro or Micro?
Is research at the county-level considered applied micro or applied micro?
The standard undergrad definitions ("micro" = "individual", "macro" = "nation") are of no help with units of measurement ...
1
vote
1answer
92 views
Why can't we control for squares and quadratics of predicted values in regression?
If my goal were prediction (e.g. of propensity scores), why couldn't I control for higher order terms of the model equation? For example, why not estimate the model and then control for squares and ...
6
votes
1answer
62 views
What type of graph can be hepful to explain the type of errors that should be used?
I have a regression of wage on several variables, such as education, marriage and so on. I want to explain that it would be a better idea to use cluster errors, since we expect the wage to be ...
4
votes
1answer
68 views
Controlling for interaction effects
In a recent paper, Edelman et al. examine (amongst other things) how discrimination on AirBnB varies with the characteristics of hosts. First, they conduct a field experiment which involves sending a ...
1
vote
1answer
52 views
Do I need to log transform these two kinds of variables?
Before regression (like fixed-effects, random-effects), for these two kinds of variables:
1) Price levels (e.g. price level of capital formation)
They are usually ratios like 0.987, 1.022..., based ...
1
vote
1answer
61 views
Estimating production functions with time series data
A while back I asked How do we estimate production functions?
The answers given address cases when dealing with cross-sectional data, However most of the data I've been seeing is given by a time ...
0
votes
2answers
85 views
How to estimate loss of customers due to customer support inefficiency?
I have a data about customers and their activity on a website for a two-year period. Also, I have a customer support work evaluation data for a shorter period of that two-year period. The question is:
...
