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1 vote

How to derive Fisher's equation?

The inflation represents the loss of purchasing power of the monetary unit, terefore, the expected inflation rate will have to be subtracted as a first approximation from the yield on government bonds ...
marco tognoli's user avatar
3 votes

How to derive Fisher's equation?

You can find the derivation in Macroeconomics by Olivier Blanchard We want to prove the relation, $$(1+i)=(1+r)(1+\pi)$$ where $i$ means the nominal interest rate, $r$ stands for the real interest ...
SGP's user avatar
  • 111
3 votes

How to present a Difference-in-Difference regression output using Rstudio?

In addition to stargazer, you can also try to use model summary package. I used to use stargazer, and stargazer is very good if you need just quick table, but model summary gives you more options and ...
1muflon1's user avatar
  • 56.4k
3 votes

How to present a Difference-in-Difference regression output using Rstudio?

install.packages('stargazer') library(stargazer) x1 = rnorm(100) x2 = x1 + rnorm(100) y = 2*x1+3*x2 model = lm(y~x1+x2) stargazer(model) And if you are using the ...
Jesper Hybel's user avatar
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1 vote

How to prove that Adjusted R^2 is less than R^2

Continuing from \begin{align*} \left( n-k\right) \cdot \overline{R}^{2}-\left( n-1\right) \cdot R^{2} & = 1-k \\ \left( n-k\right) \cdot \overline{R}^{2} + (k-1) \cdot 1 & = \left( n-1\right) \...
Giskard's user avatar
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2 votes

How to prove that Adjusted R^2 is less than R^2

That's a great answer from Dave. I have another answer. There is an alternative form of writting $\bar{R}^2$ in terms of $R^2$, with $p$ being the number of covariates in the model and $n$ the number ...
igorkf's user avatar
  • 121
3 votes

How To Publish a Quantitative Economics Paper Without a Degree or Affiliations

Economics journals generally do not require any degree or university affiliation in order to submit an article. Technically anyone can submit an article to a journal and it can be accepted and ...
1muflon1's user avatar
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3 votes
Accepted

Hausman test from Wooldridge (adding level variables)

I think the idea is a little heuristic of Wooldridge. If the model is specified correctly (strict exogeneity is true), then $x_{1i}$ and $x_{2i}$ should only be predictive of $\Delta y_i$ through $\...
Michael Gmeiner's user avatar
0 votes

Diff-in-diff and ATE vs ATT

I'm not sure but ATE doesn't seem to be identified under the parallel trends assumption for the potential untreated outcomes because ATU isn't. Here is why. First, let us show that ATU should be ...
chan1142's user avatar
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1 vote

Regression with one independent variable bounded for some observations

One possibility is to replace the maximum floor-to-area ratio in your regression with a new variable that represents the reciprocal of that ratio. So if the maximum ratio is 5, the variable would be 0....
H Rogers's user avatar
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