Economics Stack Exchange
Economics Stack Exchange

Questions tagged [applied-econometrics]

Use this tag to discuss empirical papers and issues arising when applying theoretical models to data. For theoretical econometric issues, use the econometrics tag

311 questions
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How to evaluate whether the synthetic control is good enough

I'm using the synthetic control method to evaluate a state-level policy (using synth package in Stata). I've read the seminal ADH papers on CA tobacco & Germany reunification, but I still don't know exactly how to decide if the constructed synthetic…
deeyuan
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Insignificant Interaction effect in applied econometrics (multinomial logit regression)

I'm currently writing my master's thesis where I'm applying a multinomial logit regression with interactions effect. The model I'm using is $$ P(y=j) = exp(xb_j)/(1+∑exp(xb_h)) $$ where $$ xb_j =x_1b_{ij} + x_2b_{2j} + x_1x_2b_{3j} + XB +…
user2012
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Difference between multinomial logit and conditional logit

I'm trying to decide whether to run a multinomial logit or a conditonal logit (McFadden, 1973). I have data from a choice-based conjoint study in which each of the respondent's choices was between a pair of products with varying characteristics,…
Shane
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Why the larger the sample, the lower standard deviation?

I concern about why country-level variables normally have higher standard deviation compared to that in firm-level variables. Today, my senior friend told me that it seems to be because the firm-level variables have more observations compared to…
Phil Nguyen
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Within-Cluster Correlation

I figured this would be more appropriate on this forum. I came across the following slides after a Google search of cluster-robust uncertainty estimators. On slide 10 the author attempts to demonstrate how the errors of students nested within the…
Thomas Bilach
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Interpretation of a differenced regression

I'm experimenting with some data in R and I've found that though there is statistical significance between two variables, however their changes are not statistically significant. I first ran a standard regression of revenue on price, adding a…
EconJohn
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"On the causes and consequences of deviations from rational behaviour"

The title of this post is the title of a paper I am drawing inspiration from for my final year dissertation. If anyone has the time, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3623676, this is the link to the paper and I would like to ask…
Han
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Difference-in-differences using countries: is it necessary to cluster by country?

I have a question regarding difference-in-differences (DD) studies. If I want to compare a policy that is implemented differently in three different countries - thus three different treatment groups - using a DD approach, is it necessary to cluster…
ArOk
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Exchange rate volatility

Colleagues, I have started an analysis on spatial econometrics models, and looking for data to compute an exchange rate volatility. My variables to construct the weight matrices are all bilateral including FDI, Trade and et.c My samples are 15…
Enrico Dace
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Discrete choice model without outside option?

In most empirical studies of discrete choice, the presence of an outside good is assumed. Can you give an example of a (well published) empirical paper, where there is no outside good and thus utility normalization is w.r.t. to any of the inside…
bonifaz
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Producer Econometrics: Univariate modelling with missing data

Im interested in forecasting revenue for 2018. Year Revenue 2010 $22,306,000 2011 $22,420,000 2012 $23,010,000 2013 NA 2014 $25,430,000 2015 $25,601,000 2016 $25,267,000 2017 …
EconJohn
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Impact on grant on firm survival

I am trying to estimate the impact of a grant on firm survival using the first propensity score matching to create a matched sample of similar organisations along a wide range of observables. Then I am using a cox proportional hazards model to…
Michael hall
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Regression Discontinuity Design Result

I am reading a paper on Voting Technology by Fujiwara (2015). He uses an RDD to estimate the causal effect. In his result tables, he mentions a stat named "Pre-treatment Mean", which I don't know the meaning of. He defines it in the footnote as "The…
Toshani Singh
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Why joint null test have less power when there are more coefficients involve?

From a description of DiD method of Borusyak,2020 , I saw that pretrends(integer): if some value k>0 is specified, the command will performs a test for parallel trends, by a separate regression on nontreated observations only: of the outcome on the…
Phil Nguyen
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Is there any special reason to use the character "k" standing for the "early"?

From the paper of Bacon,2018, p.5, I saw a paragraph as below The simplest way to illustrate how treatment timing works is to consider a balanced panel dataset with periods () and cross-sectional units () that belong to either an untreated…
Phil Nguyen
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