5

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 expression are time derivatives and dividing with $Y$ it follows $$\frac{\dot Y}{Y} = \frac{\dot A}{A} + \left[A\frac{\partial f}{\partial K}\right]\frac{\dot K}{...


3

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 projections are just a bunch of OLS - one for each horizon, this is how you can think about the issue: If $y_{t+h} = \alpha^h + \beta_h news\_shock_t + \sum_{j=1}^{...


3

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 macroeconomics as well. Macroeconomics, is not just vector autoregressions (VAR - which by the way corrects for endogeneity). Simultaneous equation techniques, even ...


1

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 question of whether this is the same household better than you. The exact definition of who constitutes a household is necessarily arbitrary and varies to some ...


1

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 things causing GDP or Exprop, but log mortality cannot have a effect on GDP except through Exprop.


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