Question Description

I’m working on a economics multi-part question and need a sample draft to help me learn.

1. What were the most important new things you learned from the lecture that you did not know before class?

2. What were points discussed in the lecture that you are still confused/unclear about and would like some further clarification on?

3. What topics/questions would you like to learn more about or discuss more based on

the content covered in the lecture?

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }

.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

DATA

PANEL

Panel data

key

la I

concept

Sw

Pawel

data consist of observations

units

at two

Data

or

more

Xit Yit

it

and

in

i

refers to unit

subscript

t

refers to time

435

same n

time periods

subscript

Ex

for the

Y for unit i 3

Balanced panel

all

Unbalanced panel

missing data

t l

it

where

in period 7 5

variables are observed

for all i and t

for at least

one

i ort

Motivating example

Goal

estimate effect of alcohol taxes

Data

state level panel data

Xit

Regression in

beer

4

2 01

traffic deaths

Yit traffic fatality rate

tax

82

on

of’s

0.13

x

Y

Regression in 88

Q

Does

an

increase

1.86

0.44 X

O 13

in beer taxes lead to

more

traffic deaths

A

No because of OVB Ex of omitted vars

rural us urban driving social attitude towards

drinking and driving

OUB using panel data

Eliminating

Suppose

Zi

Ex

that

Zi

is

does not change

a

factor determining

over

time

fatality rates

Zit Ziti Zi

attitude towards drinking and driving

changes slowly

approx constant btw

82 and 88

model

Regression

Yit

pot B XittpaZituit

February 18

Because 2

does not change

be eliminated

by

looking at

over

time its

changes over

effect

time

can

I

Yise

t

pot f Xi82 p Zi tuisz

Po t p Xi88 PzZituigg

Yi88

i

Subtracting

Yigg

D

g

from

2

the effect of

Xi82

Ui88 Ui82

Specifying the regression in changes

OVB from variables that

The

regression

Yg Yaz

line

2

eliminates

P Xi88

Yi82

l

over

Zi

time eliminates

constant over time

are

becomes

0.072

1.04

Xs

1182

0.36

Including

the

an

mean

intercept allows

of fatality rate

February

for

possibility

changes over

time

23

FE assumptions

where

Yit p Xittai

hit

ist

n

that

t t it

E uit

1

2

Xit ail

Xiii

Xiii y Xit

uit

O

iid

are

suit

3 Large outliers are

unlikely

4 No perfect multicollinearity

For multiple

Xk

Xi it

regressors

Xit

should

be replaced by

it

Comments

Asst

concerns

Ass 2 requires

past

variables to

If

not within units

correlated

Xit

present

future

be iid

Xit and

is said to

across

Xis for stt

units but

be autocorrelated

are

or

serially correlated

Inference

Under

and

Ass 1 4

the FE

estimators

asymptotically normal

are

consistent

If

regression

are

errors

heteroscedasticity robust

use

are

not valid

clustered SE

Here

unit

both

heteroscedasticity

units

I recommend

too

SE

the standard

autocorrelated

small

cluster

Clustered SE

are

robust to

and autocorrelation within

clustered

SE

if

n

is not

Purchase answer to see full

attachment

Explanation & Answer:

1 Page

Tags:

Economics Reflections

analysis part of statistics

statistical figures

regression analysis

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with FENTYESSAYS.COM ESSAY’s honor code & terms of service.