Questions tagged [empirical-methods]

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What (and how) to control for in adjusted wage-gap regressions?

Background: The unconditional wage gap between some group and the rest is often estimated using a regression of the form $$ w_{it} = \alpha + g_{it}'\theta +\epsilon_{it} $$ where $w_{it}$ is log of ...
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Adoption of agricultural technologies empirical research

At the moment I am working on my bachelor thesis about the adoption of agricultural technologies. More specifically, I want to study the effect of improved market access (infrastructure) and access to ...
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Examples efficiency wage papers using observational data

In one answer in this great discussion on efficiency wages it is claimed the reason that efficiency wages fell out of fashion is that we can't measure it in normal data. I agree that it is difficult ...
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At what level should I cluster my standard errors and why?

I have a yearly panel data in which each observation is a pair of monitoring stations (stations measuring water quality in rivers) one located upstream and the other downstream, each station in the ...
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How is market share of a firm calculated *in practice*?

As stated in the title: How is the market share of a firm calculated in practice? By emphasizing "in practice", I'm most interested in the market share figures that show up in companies' ...
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What are the advantages of Cobb-Douglas over a translog function?

I am carrying out an empirical study wherein I have to judge productivity for two inter-country alliances. While the translog is a better method theoretically the coefficients are insignificant, ...
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What is difference between Interrupted Time Series (ITS) and Regression Discontinuity in Time(RDiT) analysis?

Can anyone give some details on the difference between Interrupted Time Series (ITS) and Regression Discontinuity in Time(RDiT) analysis? How to choose between them? which one is more robust? Or some ...
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1 answer
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Should we test for an anticipation effect in difference-in-differences when a natural event occurs?

Normally, we test for anticipation effects as an assumption when using difference-in-differences. However, it seems that it is necessary for examining the impact of laws on firms' behaviour. For ...
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Are there any papers which used the event study methodology NOT in a financial market context?

I was advised to implement an event study in the context of air pollution levels after an event had happened. Now my problem is, that I can not really find any introductory literature (or papers), ...
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1 answer
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Converting monthly data to quarterly

I have monthly shock series, which I want to convert to quarterly form. I have seen several methods like taking average of 3 months or summing 3 months for making a quarter. I would like to know how I ...
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7 votes
1 answer
99 views

How to get this Production Function in Growth Rates

I'm struggling to understand how Khan & Reinhart (1990) go from the next production function. $$y=A f(K,L,Z)$$ Where $y$ is the production of the economy, $A$ is a variable which contains the ...
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1 answer
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Identifying Households in Panel Data

For my thesis, I'm working with a panel dataset that tracks individuals within households. To allow for merging, the dataset provides the household ID in the previous round for each individual. What I'...
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Methodology of Estimating Economic Costs?

To be specific, I am currently devising an honours thesis proposal to estimate the effects of a lack of competition in consumer electronic repair markets on variables such as firm profits, consumer ...
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The instrument in "The Colonial Origins of Comparative Development"

I am hoping to understand when an instrument is appropriate. For the purposes of this question, I'm considering a simplied version of the model in AJR (2000): $$\begin{aligned}\text{GDP} &\sim \...
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How did Bernanke et al obtained IRFs of variables not included in their baseline FAVAR model?

In the original FAVAR paper by Bernanke et al, how did the authors obtain the IRFs of industrial production (IP) and CPI in their baseline model (as shown in figure 1)? Their 'preferred' baseline ...
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1 answer
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How much can we trust macroeconometric analysis?

I am a student of economics in my masters and I have learned quite a lot about microeconometrics (I mean mainly quasi-experimental methods / causality determination). Here my current understanding is ...
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How to estimate if goods are complementary or substitutes when one good is always offered for free?

Usually whether two goods are complementary or substitutes can be measured by estimating cross-price elasticity of demand. If cross-price elasticity of demand is negative the two goods are ...
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Does anybody knows where I should look for a proxy for consumption to estimate a two factor C-CAPM?

Has anybody seen, any textbook recommendation that refers to the proper proxy for consumption. I am trying to estimate a two factor consumption CAPM, namely we I add a second factor apart from ...
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1 answer
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A question on the accuracy of economic forecasts

I apologise if thi's question appears dumb or boring, but I am asking it as a lay person. The context is that I am always arguing with friends that they should trust the economists view that Bexit (...
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1 vote
2 answers
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Name of robustness check where you exclude individuals?

I have a panel dataset and to check the robustness of the results, I'm re-estimating the models with each panel unit excluded once. Does this robustness check habe a particular name?
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2 votes
1 answer
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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-...
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3 votes
3 answers
175 views

What is Q in the quantitative theory of money?

I am testing the quantitative theory of money for South Africa. QP = Mv. It is fairly clear what M and P are (broad money, or M1, price index, etc). But I am puzzled with Q. Is it GDP or does it ...
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4 votes
2 answers
141 views

Are there economic journals which are keen to publish puzzling empirical observations?

In his book "Patterns of Speculation: A Study in Observational Econophysics"(2002) Bertrand Roehner makes a bold assertion: Physical journals welcome all kinds of experimental observations, ...
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References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
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Bootstrapping from CPS with weights

I'm using CPS monthly individual data which comes with wtfinl as a float weight. I'm computing some annual statistic for unemployed. I do that by Sum up ...
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5 votes
1 answer
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What are main methods for econometrics of Macroeconomics?

I have a background in Finance and have become pretty interested in Macroeconomics as a graduate student. However the time is limited and I want to focus on econometrics part of Macroeconomics. In ...
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2 votes
1 answer
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Group contamination in Regression Discontinuity

I'm an undergraduate student I have an empirical question regarding Regression Discontinuity and Diff-in-Diff methods. I'm currently evaluating the impact on fertility of a Conditional Cash Transfer ...
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2 votes
1 answer
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Empirical set-up for measuring elasticity with respect to quality in an environment without price

I want to answer the broad question: In the absence of prices, how are decisions made? I have data on the determinants of market share in an environment without prices. So, imagine, person A chooses ...
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5 votes
1 answer
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Why are pricing charts treated as continuous series?

I understand that prices are set by actors' offers to buy and sell within the market, however, when analyzing the data it seems to often be treated as though the price is continuously varying like ...
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3 votes
1 answer
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How are working hours statistics computed?

In a recent conversation, I was suggested that national working hours aggregates, as provided by bureaus of statistics, are based on surveys on time use. Is that true? Can macro labor data, which is ...
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5 votes
1 answer
353 views

Housing Supply Elasticity: Proxy for Exogenous House Price Movements

Mian and Sufi (2014) say We use individual and zip code level data, and exploit cross-sectional variation in house price growth to estimate the impact of rising home values on borrowing and ...
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2 votes
0 answers
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ICAPM when assets' mean returns and variance-covariance matrix are not constant over time

The intertemporal capital asset pricing model (ICAPM), under the usual assumptions, produces a multifactor pricing model like the one described in this question. When and how would it be possible to ...
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