In classic econometrics textbooks and classes, we often associate endogeneity to the correlation or relationship with the error term from a regressor. This is correct and fully agreed upon across authors and professors. But there’s some kind of new endogenous behavior that may not be correlated with the error/residual only, and it may be a […]
Endogenous co-regressor… Not what you think! Read More »
In modern times, there has been an integration of the technologies of information and the public sector, which are strictly correlated with the development of open government policies across the world. This is an increasing concern in empirical approximations from the field of Public Economics, in the sense that we can ask several questions regarding
Government and Transparency: An Applied Econometric Case for Colombia Read More »
One landmark theorem in Financial Economics is the Efficient Market Hypothesis (EMH). This theorem posits that in an arbitrage-free market, we can model an asset’s present price as the discounted expected future price: We can take the natural logarithm to show that the natural logarithm of asset prices follows a random walk – the best
Modeling Asset Prices with Geometric Brownian Motion in Python Read More »
Why do people so easily invest money showing off with new mobile, tablet, shirt, or hand watch while they tend to be reluctant or uncertain when paying for training, course, or even buying a book that can pay off and change their lives. Why do you waste money in decorating what others see “on” you
Your Real Property Read More »
انا كنت كتبتلوا من فتره عن الحاجات اللى اتعلتها فى الغربة وكنت بصراحة بكتب و مش متوقعه ان فيه حد يقرا اللى كتبتبه اصلا, لقيت انه اتقرا كتير و الناس اتخيلت اني كمان كاتبة و مشهورة مع ان دي كانت اول مره اكتب فيها حقيقي المهم انا عجبنى الموضوع لاني حسيت اني ممكن افيد بصورة
حاجات اتعلمتها فى الغربة 2 Read More »
Most of the readers of this blog would be familiar with ordinary least squares estimator and regression models. Let us talk about one source that can cause these estimates and models to be biased and inconsistent. This is especially important when we think about the causal relationship of interest or the relationship which being studied.
Threat to validity of regression analysis – Omitted Variables Bias Read More »
I often see the students and faculty writing their papers and thesis on the topics like ‘Impact of ABC on economic growth’; with a trivial conclusion that ‘ABC is having impact on growth therefore we should focus on improving ABC’. In fact there are number of problems with this kind of research which make it
Modeling Economic Growth Read More »
Some of the most popular models used in Data Analysis imply the use of the so-called “Black Box” approach. Regarding the simplest interpretation one can give in this context, it depends on the inputs and outputs that a certain model can deliver in terms of prediction power. If econometrics is thought to estimate population parameters,
The black box and econometrics. Read More »
