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Inverse Hyperbolic Transformation of Dependent Variable

In practice, econometricians just interpret it as if the regressor had the natural log transformation. "The approximate average change in the outcome that is associated with the regressor ...
Michael Gmeiner's user avatar
1 vote

Is there any downside to synthetic control compared to differences-in-differences model?

I wouldn't say the assumption is "satisfied by construction". Parallel trends prior to treatment time is satisfied by construction, but the assumption is that the trend in the synthetic ...
Michael Gmeiner's user avatar
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Difference between country-fixed and region-fixed effects

Using the variation in treatment across countries within a region, there is a significant effect. Using the variation in treatment within countries, there is not a significant effect. It is likely ...
Michael Gmeiner's user avatar
2 votes

Defining Intensive Margin and Extensive Margin

"Extensive margin" is "whether you work at all, or don't work". "Intensive margin" is "how many hours you work, given that you are working". To estimate the ...
Michael Gmeiner's user avatar
1 vote

Event Study and Diff-n-Diff

DiD and Event Study are two different "model-based" research designs ("model-based" means the estimand is identified using assumptions, see Paul Goldsmith-Pinkham's slides). ...
Alalalalaki's user avatar
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Variable dropped for collinearity in feols package in R (TWFE)

When you include country fixed effects $\alpha_i$ in your model you include a dummy variable for each country. However, you cannot have a dummy variable for each $i$, and still identify the ...
Jesper Hybel's user avatar
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2 votes
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Linear model estimated as log-log: What is the bias exactly?

There is a very simple relationship between these two models (i.e. $(II)$ and $(I)$): $$\beta_{i}=\frac{\partial{y}}{\partial{x_{i}}}\quad \forall i \in \{1,2,3,\dots\}$$ $$\alpha_{i}=\frac{\partial{\...
Pallak Goyal's user avatar
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References for minimum distance estimator

I cannot tell what the difference between minimum distance estimator (MDE) and GMM is, but there is some discussion of MDE and some further references in chapters 8 and 9 of Hansen "Econometrics&...
Richard Hardy's user avatar
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Finding the distribution in OLS

The variance of $\hat{\beta}_0$ is given by: $$ \operatorname{Var}\left(\hat{\beta}_0\right)=\sigma^2\left(\frac{1}{n}+\frac{\bar{x}^2}{s_{x x}}\right) $$ where $s_{x x}=\sum_{i=1}^n\left(x_i-\bar{x}\...
bruno's user avatar
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