5 votes
Accepted

How to get this Production Function in Growth Rates

Given $$Y = Af(K,L,Z)$$ it follows that $$\dot Y = \dot A f + A\frac{\partial f}{\partial K}\dot K + A \frac{\partial f}{\partial L} \dot L + A \frac{\partial f}{\partial Z} \dot Z,$$ where dotted ...
  • 3,186
5 votes
Accepted

Why are pricing charts treated as continuous series?

Inherently discrete variables (like "count data") have special properties, and it matters when it comes to econometric estimation. The usual criterion to treat a variable as continuous or discrete, ...
5 votes
Accepted

What are main methods for econometrics of Macroeconomics?

There are many different econometric methods used in macroeconometrics, but the basic ones are advanced versions of least squares methods and Generalized Method of Moments (GMM). Structural VARs, ARCH/...
  • 1,218
4 votes
Accepted

A question on the accuracy of economic forecasts

Regarding Forecasts in General Economic forecasts as any forecasts can be sometimes wrong, however that does not mean they are always wrong and many times people just don’t really understand how to ...
  • 44.8k
4 votes
Accepted

How to estimate if goods are complementary or substitutes when one good is always offered for free?

One answer is to try to find variation in the non-pecuniary price of the free good. Here is a famous example from estimating demand for public parks: In 1949, Harold Hotelling wrote a letter to the ...
  • 16k
4 votes
Accepted

Housing Supply Elasticity: Proxy for Exogenous House Price Movements

The idea is that all else equal, areas with inelastic housing supply (e.g., areas that are surrounded by water, so you can't just build some more houses "over that way") will see greater house price ...
3 votes
Accepted

Converting monthly data to quarterly

I've seen them summed somewhere but I cannot exactly remember where. Ultimately I don't think that it makes much difference. The quarterly sum is just the average multiplied by three. Since local ...
3 votes
Accepted

Examples efficiency wage papers using observational data

I unfortunately only know one (but very fine) paper, which estimates efficiency wages implicitly (it could also represent trade-union monopoly power, as both notions are quite difficult to identify ...
  • 2,691
3 votes

How much can we trust macroeconometric analysis?

I do not think that macroeconomic analysis would be 'less trust worthy'. In the same ways as you can solve the issue of omitted variables and reverse causality in microeconomics you can do it ...
  • 44.8k
2 votes

Group contamination in Regression Discontinuity

Are you looking for general references on Diff-in-Diff (DiD) and Regression Discontinuity (RD)? If yes, a good starting reference at the undergraduate level is probably J. Angrist and J.S. ...
  • 6,672
2 votes

How to estimate if goods are complementary or substitutes when one good is always offered for free?

When estimating something like substitution, I once ran into an issue that though there were price fluctuations, they were very small, it was likely I would observe noise rather than actual ...
  • 27.2k
2 votes
Accepted

Should we test for an anticipation effect in difference-in-differences when a natural event occurs?

A natural event is merely 'mimicking' the features of random assignment. As in your example, a tsunami is a natural event and may impact some regions, but not others. Is anticipation not a concern in ...
1 vote

Are there any papers which used the event study methodology NOT in a financial market context?

See this Github page from David Novgorodsky and Bradley Setzler (University of Chicago) and the companion.
1 vote

Identifying Households in Panel Data

I don't get it, you say you have a household ID. If it is the same across waves, then it is the same household over waves. Most likely the people who collected the data will be able to answer the ...
  • 1,201
1 vote

The instrument in "The Colonial Origins of Comparative Development"

You should include all controls in the second stage, even if they are not instruments. The entire effect of log(mortality) should be mediated through Exprop. This does not mean there cannot be other ...
1 vote
Accepted

Does anybody knows where I should look for a proxy for consumption to estimate a two factor C-CAPM?

I would recommend you read Kroencke (2017). That paper dismantles the problem in a lot of prior (flawed) consumption-based asset pricing research as well as explaining some findings for what were ...
  • 395
1 vote
Accepted

Name of robustness check where you exclude individuals?

Depending on the context this is sometimes called Jackknife resampling In statistics, the jackknife is a resampling technique especially useful for variance and bias estimation. The jackknife pre-...
  • 16k
1 vote

Minimum sample size for cross-sectional RDD

I've run RDDs on similar sample sizes and got the paper accepted at a respectable conference. It's important to run McCrary Density Tests on your sample to look for people using knowledge on the ...
1 vote

What is Q in the quantitative theory of money?

Assume there are two agents in an economy, $A$ and $B$, (and some costless transaction mechanism). Per time period, agent $A$ produces alone quantity of intermediate good $q_A$. Agent $B$, thorugh a ...
1 vote
Accepted

Are there economic journals which are keen to publish puzzling empirical observations?

I will note that I am outsider with an interest in macroeconomics, and so this attempt at an answer only applies to the situation in macroecomics as I see it. There are effectively three questions ...
1 vote

Are there economic journals which are keen to publish puzzling empirical observations?

Was he right? No. Has the situation changed since 2002? Yes, there are lots more journals, and much higher diversity of publishing. Sadly, that also means there are also a lot more venues that ...
  • 8,032
1 vote

How are working hours statistics computed?

Referring to USA, the place to go and learn a lot (if not everything) about the matter is The Bureau of Labor Staitstics Indicatively, for one of BLS's many outputs, they report that: Payroll ...

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