7

Let us rewrite the two equations in your question like this to avoid using the same symbols for different parameters: $income = \beta_0 + \beta_1 edu + \beta_2 age + \epsilon$, if male = 0 $income = \gamma_0 + \gamma_1 edu + \gamma_2 age + \epsilon$, if male = 1 You can account for the possibility of different coefficients by adding interaction terms for ...


5

My understanding is that the classical test for serial correlation is actually conditional to the validity of the strict exogeneity assumption: $E[u_t|X]=0,$ or, as the requirement applies to any $t$, $E[u_{t-1}|X]=0$. This is a shortcoming, because violations of the strict exogeneity assumption usually generates autocorrelation (we may find evidence for ...


4

Surely there is an element of tautology here? It is tautology only in a way that within its logical system it is always true (i.e. following the definition of tautology from pure math). However, it is not a tautology following rhetorical definition of tautology (used in propositional logic) as a statement that refers to itself repetitively (e.g. MV=PY is ...


3

The answer appears to be in your quotes: "The intuition here is that only units that are alike on unobservables and observables would follow a similar trajectory pre-treatment." That intuition isn't necessarily true. There could always be unobserved confounders which hamper the analysis. Nothing renders you immune from that. However, once you are ...


2

Regression discontinuity, IV, diff-in-diff, fixed effects, synthetic control, and MLE, and GMM are the major methods. Fixed Effects example - Zou (2021) Fixed Effects and IV example - Benzell and Cooke (2021) Diff-in-diff example - Gu, Jiang, Zhang, and Zou (2021) Regression discontinuity (fuzzy also) - Ost, Pan and Webber (2018) Regression Kink ...


1

My suggestion would be to review the entry on Inflation by Lawrence H. White in the Concise Encyclopedia of Economics, particularly the part where he gets into the dynamic form of the equation and its uses.


1

It should be (Nominal Price for Selected Year)*((Index of base year)/(Index of selected))


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