Ekonometrika fani bilan tanishuv


Steps in Empirical Economic Analysis



Yüklə 20,85 Kb.
səhifə7/8
tarix08.02.2023
ölçüsü20,85 Kb.
#83438
1   2   3   4   5   6   7   8
Ekonometrika fani bilan tanishuv-fayllar.org

Steps in Empirical Economic Analysis

(cont’d)



21

Step 3:
Turn it into an econometric model.


  • solve quantification issues

    • how can we measure hours spent in criminal activity?

    • how do we approximate the probability of being caught with an
      observable economic variable?

  • specify the functional form of the economic relationships

    • example (crime vs. wage):
      crime = β0 + β1 wage + β1 oth_inc + β2 freq_arr + β3 freq_conv

      + β4 avg_sen + β5 age + u

      • u ... error term or disturbance, which contains:

        • unobserved factors (“criminal wage”, moral character, family background)

        • measurement errors

        • random nature of human behaviour

The Structure of Econometric Data

Cross-sectional data. Time series.


Pooled cross sections and panel data.


22

Cross-Sectional Data



23

  • 1 observation = information about 1 cross-sectional unit

    • cross-sectional units: individuals, households, firms, cities, states

  • data taken at a given point in time

  • typical assumption: units form a random sample from the whole population → the notion of independence of the units’ values

    • possible violations:

      • censoring: wealthier families are less likely to disclose their wealth

      • small population: neighboring states influence one another, their indicators are not independent



Yüklə 20,85 Kb.

Dostları ilə paylaş:
1   2   3   4   5   6   7   8




Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©azkurs.org 2024
rəhbərliyinə müraciət

gir | qeydiyyatdan keç
    Ana səhifə


yükləyin