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15 votes

R in econ departments?

In my university the choice of program is considered generally irrelevant. We focus on results, and it is up to each student to determine which program is best suited for the task and user preference. ...
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10 votes
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Visualization tools for game theory: Game trees

LaTeX with forest The forest package of LaTeX allows you to draw game trees with pretty simple syntax. After copying a pre-set ...
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  • 14.4k
8 votes

R in econ departments?

If you are only looking for "A department where at least few researchers use R? ", I believe you should be able to find plenty. In my department (Vanderbilt University), I can count at least ...
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7 votes

Visualization tools for game theory: Game trees

Mathematica has a graph building and drawing capability. So, if you built the graph in Mathematica, then you could plot it using settings of your choosing. In Mathematica, you might use the ...
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  • 1,678
7 votes

R in econ departments?

Basically it's better to use the software your PI uses! First (s)he will be able to correct your code. Second, if you're a TA for a class using one software, it's better to handle it... To find the ...
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  • 698
7 votes
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Papers that use R vs Stata

The main economic journals are slowly starting to require authors to make their data and the code of their analysis available as part of the online appendix. When this is the case, it is easy to ...
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7 votes

Python vs R (vs Stata): the old battle revisited

I use all three programs. Python can do everything that R can do and R can do everything that Python does, but I must say R is superior to Python when it comes to the packages. For that reason for ...
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  • 42.3k
6 votes
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Is there empirical evidence on usability of Cobb-Douglas production function?

The simple answer to why the Cobb-Douglas functional form is used is because it is at least a log-linear approximation to some higher-order production function. That is, suppose you take a functional ...
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  • 9,137
6 votes
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Gini index vs Herfindahl index: one increases while the other decreases

They measure different things. In particular the Gini index measures inequality and is strongly affected by the number of individuals with almost nothing, while the Herfindahl index measures the ...
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  • 4,674
6 votes

Journal that sum up a research area

In addition to the +1 list provided by tdm, journal of economic perspectives often publishes literature reviews and quasi-literature reviews. The goal is JEP is to fill the gap between different ...
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  • 42.3k
5 votes

Examples of Applied Micro Paper with R (!) Code and Data in Public Repository

You could try searching the Harvard Dataverse for fileType:"R Data" like this: https://dataverse.harvard.edu/dataverse/harvard?q=fileType%3A%22R+Data%22 I think ...
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5 votes

Papers that use R vs Stata

See RePEc's software top. You'll find much Stata, a bit Matlab, and nothing else. From long personal observations, economists' preferences are ranked like this: Stata (none) Matlab Python, R SAS, ...
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5 votes
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Why does pgmm function gives error every time?

The plm package is for panel data. Therefore there has to be variables in dataset with (id,time) to indicate the panel structure. If the argument index is not used when calling an estimation routine ...
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  • 3,176
5 votes
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How to recognize correlation in spurious regression case

Just regress Y on X: $$Y=b_0+b_1X+ e$$ and you will likely find some negative significant $b_1$ coefficient even though both series are just unrelated random walks. You can also see that as one series ...
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  • 42.3k
4 votes

Visualization tools for game theory: Game trees

If you use LaTeX, you can also draw game trees with the istgame package, which is based on TikZ. The manual contains lots of examples with full codes including: ...
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4 votes
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Vickrey Auction question

Optimal allocation refers to whom the seller awards the item, in order to maximize revenue. In a Vickrey auction, it is a Nash equilibrium for everyone to bid their valuations. This is stronger than a ...
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  • 1,216
4 votes

Solving a system of equations using R

Note 1.: It is rude to edit a question after it was answered; I had to make significant edits to make my answer consistent. Note 2.: this is not a system of equations. There are two functions defined,...
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  • 26.2k
4 votes
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Functional form for regression in a hedonic pricing model

It is widely considered that economic theory does not suggest any particular functional form for a hedonic pricing model. See for example Cassel & Mendelsohn 1985 which references several sources ...
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  • 6,813
4 votes
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Adding a subscripts for P (price) in equation

You should write: $$ P_{i,j,k} = f(L_i,S_j, E_k). $$
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  • 8,632
3 votes
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Simultaneous Equations Models in R

If you search for “simultaneous equations” inside the Econometrics Task View web page you can find two results: the systemfit and the bimets packages. As you stated, the systemfit package is a ...
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  • 46
3 votes

How to perform unbalanced panel data regression in R?

Here the solution would depend on what you want to accomplish. Note the problem is not just that the series is unbalanced, for an ordinary unbalanced panel data-set where firms have different number ...
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  • 42.3k
3 votes
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Total factor productivity (TFP) estimation in R

Following the prodtest manual they define omega as residuals from the model, that is $$\omega_{it} = y_{it} − (\alpha + w_{it} \beta + k_{it}\gamma)=y_{it}-\hat{y}_{it}$$ estprod does not have any ...
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  • 42.3k
3 votes

How to estimate a model by pooled OLS when we DO NOT have panel data?

You don't need panel data for pooled OLS. You can use pooled cross section data which is similar to panel data but it is different data type. In panel data you follow the same units (e.g. individuals,...
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  • 42.3k
3 votes

Replicate Blundell and Bond (2000) results using R

3. How do we recover parameters from production function estimates (INCOMPLETE ANSWER - will be updated with how to do this in R once I have time to figure it out, or if somebody else knows...) ...
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  • 101
3 votes
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Why there is only one value of confidence interval?

Standard error is not sd but se. Standard error is related to sd but they are not the same $\text{se}=\frac{sd}{\sqrt{n}}$. You can also confirm here that in the first case $1.41\approx 4.46/\sqrt{10}$...
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  • 42.3k
2 votes
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Code finding all stable matchings in one-to-one problem

The matchingMarkets package in the R software now implements two constraint encoding functions to find all stable matchings in the three most common matching problems: ...
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2 votes

Code finding all stable matchings in one-to-one problem

Patrick Prosser has some great java code at http://www.dcs.gla.ac.uk/~pat/roommates/distribution/ which, among other things, can compute all the stable matchings in roommate problems. The code is for ...
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2 votes
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Cholesky Decomposition in R package "vars"

According to page 6 of the documentation for vars, the Cholesky decomposition matrix is lower triangular: The long-run impact matrix is the lower-triangular Choleski decomposition of the above ...
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  • 1,169
2 votes
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Regression - Testing for autocorrelation in the presence of heteroscedasticity

General remarks: The BG test under homoskedasticity can be done using the bgtest command in the lmtest package of R. The $(n-p)...
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  • 2,039
2 votes
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When does the "stationary" problem become and issue with panel data?

The data sample is so small that formal testing for stationarity would be essentially worthless. Inspect visually your individual series for any obvious trend. This would be the case where even with a ...
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