MSR Economic Perspectives – Page 7 – Official Blog-M&S Research Hub (www.ms-researchhub.com)

The budget constraints in the microeconomic approach

7 Comments / Econometrics / John M. Riveros

Following the last post which gave an example to model the Cobb-Douglas utility function regarding microeconometrics, we need to provide an important aspect related to the behavior of the consumer. That is the budget constraint (referred to as a monetary linear constraint) which limits the number of goods that the consumer can buy and use

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A brief example to model the Cobb-Douglas utility function using Stata.

13 Comments / Econometrics / John M. Riveros

Regarding microeconometrics, we can find applications that go from latent variables to model market decisions (like logit and probit models) and techniques to estimate the basic approaches for consumers and producers. In this article, I want to start with an introduction of a basic concept in microeconomics, which is the Cobb-Douglas utility function and its

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YEAR 2019

1 Comment / Uncategorised / Admin

In our first YEAR “2019”, we had **Over 120,000 visits to our institute website **Over 50 completed interactive econometrics private and group training **Around 70 researchers, 10 of them successfully completed their Ph.D. degrees, have booked our methodological and statistical guidance services ** 1 annual conference, and around 5 onsite and online workshops ** 5

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Spurious Regression With Stationary Time Series

2 Comments / Uncategorised / Atiq Rehman

The spurious relationship is said to have occurred if the statistical summaries are indicating that two variables are related to each other when in fact there is no theoretical relationship between two variables. It often happens in time series data and there are many well-known examples of spurious correlation in time series data as well.

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Handling structural breaks with logarithms

3 Comments / Econometrics / John M. Riveros

As we saw in other econometric blogs of M&S Research Hub, the use of logarithms constitutes a usual practice in econometrics, not only for the problems that can be derived from overusing them, but also it was mentioned the advantage to reduce the Heteroscedasticity -HT- (Nau, 2019) present in the series of a dataset, and

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Robust Modeling of Policy Changes: Difference in Difference (DiD)

40 Comments / Econometrics / Sherif M. Hassan

The difference in Difference (DiD) is a popular method in empirical economics and has important applications in other social sciences as well. DID is a quasi-experimental design that uses panel data to estimate the effects of specific intervention or treatment (such as policy changes, new laws, social program implementation) on outcomes over time and between

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Taking Logarithms of Growth Rates and Log-based Data.

8 Comments / Econometrics / John M. Riveros

A usual practice while we’re handling economic data, is the use of logarithms, the main idea behind using them is to reduce the Heteroscedasticity -HT- of the data (Nau, 2019). Thus reducing HT, implies reducing the variance of the data. Several times, different authors implement some kind of double logarithm transformation, which is defined as

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