# Questions tagged [statistics]

Statistics is a branch of mathematics dealing with the collection, analysis, interpretation, presentation, and organization of data.

137 questions
Filter by
Sorted by
Tagged with
55 views

### Comparing cost of living of one state with that of other states [closed]

In the past I read something like this: If basic expenses for family went from 100€ to 200€ but its wage went from 200€ to 400€ it can expend more than before. Weighting the costs of living ...
50 views

### Understanding this particular criticism of RCTs by Deaton and Cartwright

Deaton and Cartwright make several criticisms of randomized controlled trials (RCTs). My question is about this one in particular from a 2016 VoxEU piece: Well-conducted RCTs could provide ...
54 views

### Derive the asymptotic distribution

Let $x_1, ..., x_n$ and $y_1, ..., y_n$ be two independent random samples from $X$ and $Y$. We have $µ_X = E (X ) > 0, µ_Y = E (Y ) > 0$ and $σ^2_X = Var (X )$ and $σ^2_Y = Var (Y )$. Derive ...
38 views

35 views

### Running a regression to avoid multicollinearity

I have the following regression (pooled OLS; panel data): Y Treated Shock Shock*Treated {with industry and year fixed effects} Y is a continuous variable, “...
25 views

### Where can I find an endogeneity proof for bias by LLN?

It is intuitive that E[xe] is non-zero but the result E[xe]=sigma(x)*sigma(e)*corr(xe) seems odd. Please help point me in the right direction.
9 views

### how to subtract linear regression result from numerical values on rstudio?

i have found real exchange rate overvaluation or undervaluation by multiplying by purchasing power conversion factors(Nominal exchange rate*PPPUS/PPPUK).In the next level i found the balassa samuelson ...
39 views

### Would it be accurate to say that the economies of most of the countries are capitalistic?

What is the proportion of countries that are capitalistic? What is the proportion of the planet's population who live in such countries? How is this, (somewhat subjective?)
30 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: ...
25 views

### Manipulating index numbers

I have a producer price index which is the composite of 9 various commodity prices including that of coal. I want to remove the effects of coal price changes from the original index. I have data on ...
39 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 ...
36 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 ...
87 views

### Regarding some econometric problems

How do I know the specification in (3.2) is a chi-square distribution with df k-1? and why is it the case that the asymptotic variance of $\hat{\beta}_{FD}- \hat{\beta}_{OLS}$ is simply the ...
59 views

### Gapminder and OurWorldInData [closed]

I have found two great resources to learn about the distribution of goods (of any kind) all over the world: gapminder (Hans Rosling) ourworldindata (Max Roser) By reading their "about" sections they ...
171 views

### How does one do a hypothesis test for elasticity?

Given the regression output $$\widehat{\ln cons} = \underset{(0.6018)}{0.4054} + \underset{(0.0744)}{1.2739}\, \ln m - \underset{(0.1902)}{0.6666}\, \ln p_1 -\underset{(0.2645)}{1.6146}\, \ln p_2$$ ...
99 views

### GDP per capita and trade relationship

There's a lot of literature describing the relationship between growth and trade, but I'm not sure what conclusions I can draw from GDP per capita (specifically) and trade in one particular year for ...
24 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 ...
1k views

### Type - I Error & Type - II Error: Pregnancy test analogy - is it legit?

I found this picture in my stats book but I'm now confused to what 'positive' and 'negative' is referring to. As seen in the table below, Type 1 error is the error that its H0 is actually true but ...
59 views

### What R-squared is a low R-squared?

I keep hearing that R-squared does not really matter in economics research and that due to the unpredictable human nature, economics research regressions tend to have low R-squared. But how much is ...
43 views

### Multivariate linear regression: how to test for whether the slopes are the same?

If I regress wages on education and the dummy variable gender using a linear conditional expectation function (wage = a + b(education) + c(gender)), how can I test that the slope b is the same for ...
36 views

### Sum of residuals in multiple regression equals 0

I understand that in multiple regression $$\sum_{}^{} X_{i,j}\hat{u}_{i} = 0$$ but I do not understand how my textbook says that if we include the intercept in the regression ($X_{i,0} = 1$)then we ...
143 views

### Convergence in probability and convergence in distribution

Im a little confused about the difference of these two concepts, especially the convergence of probability. I understand that $X_{n} \overset{p}{\to} Z$ if $Pr(|X_{n} - Z|>\epsilon)=0$ for any ...
34 views

### Independently and Identically distributed random variables

What does it mean for two random variables to be "identically distributed"? Does it mean that they come from the same probability distribution?
39 views

### Existing metric for personal productivity hours needed per life hour?

With about 50 hours of productivity a week, including work, cooking, etc. I can complete the tasks and pay the expenses necessary to live about a week. Subtract maybe 5 hours of labor that goes into ...
23 views

### Number of items per consumer in a period (German supermarkets)

I'm trying to find some figures, however I cannot come up with a correct formulation, or lack of information in this field. I need the statistics of how many items are sold per receipt (avg) in ...
31 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 ...
71 views

### If someone stays at home because they can't find the type of job they want, are they included in unemployment numbers?

Say someone is looking for a job, but the ones they can find either don't give them the right compensation (businesses pay them too low) or is not the type of work they're looking for. So they stay at ...
44 views

### Estimation of a Non-linear production function with Non-linear least squares

Suppose that you have to estimate a Non-linear production function (for instance a Cobb-Douglas or a CES) by using Non-linear LS (and hence without log-linearization). You have just aggregate time ...
83 views

### Transformation of random variables and second order stochastic dominance

Suppose $X$ and $Y$ are two random variables where $X$ has SOSD (second order stochastic dominance) over $Y$. Let $g(\cdot)$ be a monotonic function and $X' = g(X)$ and $Y' = g(Y)$. Under what ...
67 views

### Using the sample mean to test hypotheses

Suppose that we have some data-points $x_1, ..., x_n$ and want to test a model that specifies a stochastic process which supposedly generated the data points. For example, we might want to test the ...
37 views

### Is there any reliable data on what % of the UK population currently earn less than £17,300 annually?

According to the Living Wage Foundation the "real living wage" in the UK is £9 an hour Which assuming a 37 hour week & rounding to the nearest whole GBP amounts to £17,375 Formula used ((9*37)/...
154 views

### Reference request: Gender wage gap / Minority wage gap

Disclaimer: I am neither a social scientist nor an economist. I hope the ESE is the right place to ask this question. Disclaimer 2: I do not intend to spark an ideologically driven discussion here. ...
40 views

### Is the mode of wage distribution a meaningful economic indicator?

The Central Statistical Office of Poland publishes a report every two years, in which it diagnoses the labor market. Among other indicators, they publish the mode of the distribution of wages, in ...
18 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 ...
22 views

### Does a tighter spread between occupancy and stabilized occupancy indicate higher demand?

I'm trying to understand how to think about real estate markets and how to identify markets where there might be strong demand for additional housing (I'm looking at senior housing in particular) and ...
264 views

### How to interpret Mincer equation coefficients

Consider the Mincer model: $\log(y)=b_0 + b_1S + b_2E + b_3E^2+u$ where S is schooling, Y is salary (monthly) and E is experience. I want to verify the following statements: The return for 1 extra ...
42 views

### Separation of base and momentum effect

I am calculating YoY change in macroeconomic variables (inflation, industrial production etc.). However this growth is distorted by low base of last year. Currently I am using 2 year cagr to adjust ...
98 views

### Explain some All countries excluding residents in BIS Debt Securities Data

In the BIS Debt Securities statistics: In both column "issueresidence" and column "issuenationality" there is a category called "All countries excluding residents". I do not understand what it means. ...
23 views

### Group-level random effect correlated with within-group independent variable

Dear StackExchange community, Question: According to, e.g., Wikipedia, random effects models assume "that the individual specific effects are uncorrelated with the independent variables." I ...
145 views

### Did I calculate the expected value and the variance correctly?

I have the following assignment to solve but I'm not sure if I solved it correctly. Questions Let the stochastic process $(Y_t)_t$ be defined by $Y_t = \mu + Y_{t-1} + \varepsilon _t$ with \$(\...
16 views

### What is the size of European SMEs in case of money flow and revenue?

I want to focus my product on SMEs (B2B financial service). So to research the market size I decided to check the numbers first. I had not a very productive time studding EU statistic data on their ...
511 views

### Lack of skilled IT workforce, but they do not raise wages

In my country, Portugal, many IT companies are always complaining in media regarding the lack of skilled IT workforce, but they do not raise wages. We have statistical data from the government that ...
2k views

### Quarterly GDP growth: YoY vs QoQ / terminology

Quarterly GDP growth can be calculated either in terms of YoY change or - in the case of seasonally adjusted data - in terms of QoQ change. (A third option would be to annualize the QoQ rate.) To ...
26 views

### Is there any specific distribution that is recommended for modelling individual income?

I'm a statistician and my colleagues work with income data every now and then, but they usually apply some arbitrary cut-off and go with logistic regression. I know there's an infinite range of ...
76 views

### Comparing relative change for different base value

I need to compare change in employment size for a sample of companies. I could use percentage change, however, the problem with it is that when the base is small, a small absolute change result in a ...
162 views

### Learning Suggestion to better understanding on Advanced Microeconometrics (Master Degree Level)

I am studying master in Economics and currently taking the compulsory course of Econometrics in which I have problem in understanding the materials. It is a must for me to pass this course in current ...