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Questions tagged [applied-econometrics]

Use this tag to discuss empirical papers and issues arising when applying theoretical models to data. For theoretical econometric issues, use the `econometrics` tag

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How do we estimate production functions?

In a standard economics education we learn about production functions, indicating an output as a function of a given input of capital and labour. An average model looks like this: (1) $F(L,K)=L^{...
EconJohn's user avatar
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7 votes
1 answer
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Is there empirical evidence on usability of Cobb-Douglas production function?

I am trying to estimate a simple Cobb-Douglas production function $Y=AL^{\alpha}K^{\beta}$ on US data and get an unrealistic estimate of $\alpha$ and a high p-value for $\beta$. Structure of ...
Petr's user avatar
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5 votes
2 answers
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Dealing with Missing Data when Testing the CAPM

Question How should I deal with missing data when trying to test the CAPM? Specifically, there are some stocks that are newly listed and/or delisted at any time. I don't want to exclude assets for ...
jmbejara's user avatar
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4 votes
0 answers
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How to econometrically identify perfect complements in production?

The production $$f(x_i,...,x_n)=\min\{x_i,...,x_n\}$$ is pretty straight forward and usually with smaller size data sets and can usually be picked up on rather quickly in an intuitive sense. ...
EconJohn's user avatar
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3 votes
2 answers
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Why GDP series always has an unit root problem?

In one of the lecture slides of class that I am currently taking our professor mentioned that when it comes to the GDP is it safe to always assume it has unit root and testing for it is just ...
csilvia's user avatar
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2 votes
2 answers
301 views

Interpretation of a differenced regression

I'm experimenting with some data in R and I've found that though there is statistical significance between two variables, however their changes are not statistically significant. I first ran a ...
EconJohn's user avatar
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2 votes
1 answer
482 views

Testing the long run phillips curve / Contradicting empirical results?

I've been working with some historical macroeconomic data of the Canadian economy and am having difficulty empirically testing the Phillips curve long run and short run versions. I got the data from ...
EconJohn's user avatar
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1 vote
1 answer
296 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 ...
valve01's user avatar
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1 vote
2 answers
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Difference-in-differences using countries: is it necessary to cluster by country?

I have a question regarding difference-in-differences (DD) studies. If I want to compare a policy that is implemented differently in three different countries - thus three different treatment groups - ...
ArOk's user avatar
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