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Questions tagged [statistics]

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

3
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1answer
25 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 ...
3
votes
1answer
34 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 ...
0
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1answer
19 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 ...
6
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1answer
101 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 ...
3
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1answer
27 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?
3
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1answer
31 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 ...
0
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0answers
22 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
15 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 ...
1
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2answers
55 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 ...
0
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0answers
40 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 ...
3
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0answers
44 views

Transformation of random variables and second order stochastic dominance

Suppose X and Y are two random variables where X SOSD Y. Let g(•) be a monotonic function and X'=g(X) and Y'=g(Y).Under what conditions of g, X' SOSD Y'? I know if g is linear SOSD property is ...
2
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2answers
64 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 ...
0
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1answer
34 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)/...
4
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3answers
70 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. ...
2
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3answers
37 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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0answers
13 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 ...
0
votes
1answer
17 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 ...
1
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0answers
105 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
12 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 ...
0
votes
1answer
37 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. ...
1
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0answers
15 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 ...
1
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1answer
126 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
14 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 ...
7
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5answers
286 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 ...
0
votes
1answer
758 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 ...
1
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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 ...
2
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0answers
43 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 ...
1
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1answer
113 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 ...
7
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2answers
83 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....
1
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2answers
65 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 ...
2
votes
1answer
26 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 ...
1
vote
1answer
38 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 ...
2
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4answers
113 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
80 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 ...
0
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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 ...
0
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1answer
50 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 ...
2
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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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0answers
20 views

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 ...
0
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3answers
1k 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 ...
0
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1answer
28 views

How to interpret increases in percentage with different sample groups

Apologies if this question is not worded very well - this is not really my field of expertise but I'd like to see how to correctly understand some data. Let's say I am studying the increase in cases ...
1
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2answers
54 views

How do international organizations collect statistics regarding a country?

How do international organizations like IMF, WB, and CIA Fact Book collect statistics regarding a country's economic indicators? What is their primary source of information?
2
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2answers
54 views

Conditional independence and no correlation

I have a question regarding basic econometrics. Consider the model $$y_i=\alpha +\beta x_i +u_i$$ I understand that assumption 4 of the linear regression model states $$[1] \quad E(u|x)=0$$ ...
0
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3answers
116 views

CAPM goodness of fit

I want to test the CAPM. I have collected monthly data from 1-9-2012 to 1-9-2017. I have data from the return of Standard&Poor's 500 and data from various US companies. The beta's seem right, but ...
4
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3answers
79 views

Clustered standard errors

(My research question is economics based, but for simplicity, I'm using a non-economics example) Suppose I'm trying to find out whether average body temperature of a population is equal to 37 degrees ...
3
votes
1answer
71 views

What is the standard error on quarterly GDP figure? [closed]

The government and media seem to judge whether it is in a good economy right now based on its quarterly GDP figure. However, I wonder how its figure is trustworthy. Even if the quarterly GDP is +1.2%,...
3
votes
2answers
146 views

How prevalent is the use of machine learning among economists?

I wonder how machine learning, particularly deep neural net which is considered the state-of-the-art among many data scientists, is used among economists, or other experts who is in in the similar ...
3
votes
1answer
42 views

Simplifying a monoplist's objective function under incomplete information

I am working through Rochet and Stohle (2003) chapter on multi-dimensional screening, and I am struggling filling in the blanks between equation (2.1) p. 154, and its simplified form on page 155. In ...
0
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1answer
23 views

Is there a statistic that shows which countries would be owed money if all external public debts were payed immediately?

The media loves to tout big debt figures whenever there is an economic crisis, but unless we know who owes money to who, it seems to me that these figures are useless since debt is all relative. I ...
0
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1answer
44 views

What does this graph mean?

I know little about economics and am very confused on what this graph represents. I found it when I saw that the President had tweeted it and was wondering what it mean. Specifics what "Jobs ...
6
votes
1answer
66 views

Is there any statistics available on forecasting failures?

Like what percentage of financial/economical forecast fail? Or how often do politicians create bad policies based on wrong forecasts?