6
votes
Identifying assumption meaning
"Identification" is the most loaded term in econometrics. There are multiple cheap talk equilibria with regard to its meaning. It is used with different intended (but related and overlapping)...
- 2,619
4
votes
Accepted
Identification of firm-worker fixed effect wage equation
Think about a regression where you have two factors. Normally when you have a constant in the regression you would put one level of each factor to 0 as a reference level. Leaving out the constant you ...
- 3,798
4
votes
Economies of scale v.s. technological change
The problem is to distinguish between changes along the production function, from $f(K_1, L_1)$ to $f(K_2, L_2)$, and changes of the production function, from $f(K_1, L_1)$ to $g(K_1, L_1)$.
A very ...
- 170
3
votes
Accepted
How to estimate $\gamma$ in the following model?
If $u$ is normally distributed conditional on $x$ and $Q$, then you could estimate through probit the second equation. Because $Q$ depends on $e$, and $e$ is correlated with $u$, this assumption ...
- 3,768
3
votes
Accepted
Can a subset of variables in a lower triangular Cholesky identification scheme be ordered arbitrarily if we do not care about their shocks?
You are right.
Ordering a variable first reflects the identifying assumption that this variable will not respond contemporeneously to the other shocks in the system. You could obtain the exact same ...
- 948
3
votes
Identifying assumption meaning
I think the best way how to explain this is to first quickly explain what identification actually is. As mentioned in this thread:
For example, in the John Stachurski "A Primer in Econometric ...
- 57.7k
2
votes
Specifying a Diff-In-Diff with multiple treated groups over multiple years
Firstly, the diff-in-diff already is a fixed effects estimation. If you run a regression with FE and your time variant terms ($S_i*T_t$ and $T_t$) as in the plain and simple diff-in-diff setup, as ...
- 423
1
vote
Two endogenous variables and two control functions
I think you could proceed by regressing $Y$ on $X$, $Z$ and $V = (V_1 + V_2)$. Note that by substituting $U$ into the regression you get:
$$
Y = \alpha X + \beta Z + \gamma \delta_4 V + (\varepsilon + ...
- 12.5k
1
vote
Identifying assumption meaning
"Identification" is the professional jargon in econometrics for "asserting that the outputs from an econometric model do indeed estimate what we want and declare that they estimate"...
- 33.9k
1
vote
Identification strategy for measuring impact of employee turnover on project quality
This looks challenging, and the following would only work in circumstances where:
Reliable estimates can be made of how long each completed project should have taken to complete.
Good records are ...
- 8,584
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 ...
- 778
1
vote
What happens if the "control variables" are also endogenous?
As other posts have pointed out, endogenous regressors may contaminate all parameter estimates in regression when regressors are correlated.
Moreover, it may seem difficult to conceive a situation ...
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