Questions tagged [statistics]

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

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36 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?)
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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: ...
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1answer
24 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 ...
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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 ...
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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 ...
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1answer
72 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 ...
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1answer
53 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 ...
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1answer
57 views

How does one do a hypothesis test for elasticity?

Given the regression output $$\widehat{\ln cons} = \underset{(0.6018)}{0.4054} + \underset{(0.0744)}{1.2739}\, \ln m - \underset{(0.1902)}{0.6666}\, \ln p_1 -\underset{(0.2645)}{1.6146}\, \ln p_2$$ ...
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2answers
78 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 ...
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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 ...
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1answer
463 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 ...
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1answer
46 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 ...
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1answer
40 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 ...
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2answers
35 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 ...
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1answer
119 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 ...
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1answer
31 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?
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1answer
34 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 ...
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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 ...
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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 ...
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2answers
68 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 ...
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41 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 ...
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1answer
61 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 ...
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2answers
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 ...
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1answer
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)/...
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3answers
146 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. ...
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3answers
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 ...
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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 ...
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1answer
21 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 ...
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0answers
204 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 ...
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1answer
20 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 ...
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1answer
65 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. ...
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0answers
21 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 ...
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1answer
135 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 $(\...
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0answers
15 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 ...
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5answers
487 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 ...
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1answer
1k 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 ...
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1answer
25 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 ...
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0answers
55 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 ...
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1answer
136 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 ...
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2answers
86 views

Do people really care about higher moments?

I have heard that people often handle uncertainty using point estimates not probability distributions. However, I have been unable to find any evidence for this in the heuristics and biases literature....
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2answers
69 views

Econometrics: Omitting a significant variable

Im currently doing a project to construct a demand function for Meat & Fish. My data indicates that Price of Fruit & Veg is individually statistically significant. However, after a omitting ...
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1answer
28 views

Dimensional analysis for the qdf/quantile function corresponding to the pdf/CDF for the size distribution of income

I have previously posted a very similar question on Stackoverflow, but based on responses there I have decided that the real nub of my question is economic. I will give a longish introduction, mainly ...
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1answer
39 views

What is the name and the mathematical model of this effect

Consider the case when some economic variable affects some another (for example, interest rate affects price index) because it involves human decisions. The effect is not immediate and would take some ...
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4answers
148 views

About studying econometrics in undergraduate

I’m currently undergraduate student studying economics and mathematics. I took econometric class and mathematical statistics class last semester. So during the vacation, I decided to study ...
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1answer
90 views

Stochastic process difference equation: stationary distribution

How can I find the stationary distribution (as t goes to infinity) of stochastic difference equations in the form: $x_{t+1} = a*x_t + b*N(0,1)$ where N(0,1) is a standard normal pdf I have ...
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1answer
26 views

Ttest and heteroscedasticity problem in no intercept model

I was running a t test over two regression betas with the assumption of equal variance. I know that if the condition of homoscedasticity do not hold then there are chances to have type 2 error but ...
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1answer
53 views

Difference between $x$ and $X$

Sorry for my bad english, i'll try to explain my difficulty. 1° Question In the last exam an exercise asked to derivate OLS estimators and calculate their value with the data provided (ex.: $\sum ...
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0answers
56 views

Conditional maximum likelihood of AR(1) UNIFORM PROCESS [closed]

Let $Z_t = \phi Z_{t-1} + u_t$ where $u_t \sim uniform[-1,1]$ and $|\phi|<1$ I I am facing problems coming up with conditional maximum likelihood estimate of an AR(1) process with uniform errors. ...
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Approximate factor model: Weakly correlated and eigenvalue

To my best knowledge, in Ross's APT, it is assumed that the pricing model is the exact factor model. Chamberlain (1983 ECTA) expanded it into the approximate factor model. In the exact factor ...
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3answers
2k views

Question about violating the zero conditional mean assumption

Question for y'all with a background in econometrics. Does the zero conditional mean assumption rely on complete randomness in a trial when doing regression analysis? For example, if I was testing ...