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Results tagged with empirical-evidence
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user 61
1
vote
Accepted
"Normal" vs "actual" variables in empirical work
"Normal" in this context means "trend" (usually a simple linear trend, but in principle could be a non-linear trend by using for example the Hodrick-Prescott filter device).
Decompose output $Y_t = T …
4
votes
Accepted
Is the development of "developing countries" evidence against the idea that former colonial ...
To complement @rocinante answer the argument described in the question silently assumes that growth can happen only if you steal from somebody. So if the past colonies cannot steal from anybody, they …
2
votes
Accepted
Economic examples of (sub)martingales
Applying the Law of Iterated Expectations on the defining property of a sub-martingale $E(X_{t+1}|X_1,\dots,X_t）\ge X_t$ we have that
$$E\Big[E(X_{t+1}|X_1,\dots,X_t)\Big]=E(X_{t+1}) \geq E(X_t)$$
S …
2
votes
Gali and van Rens: The Vanishing Procyclicality of Labor Productivity
A napkin theoretical exploration of the issue, to find possible directions to look for explanations, could go like this:
According to the paper, the volatility of output and productivity has fallen …
1
vote
Reasons for the recent rise in long-term unemployment
I would "advise" to wait... a few more years! From the figure you provided, there is a perhaps slow but visible rising trend (with business-cycles-like "seasonality") for both the long-term and the mi …