Time series vs Cross sectional e Time series data has a temporal ordering unlike cross-section data Will need to alter some of our assumptions to take into account that we no longer have a random sample of individuals Instead. we have one realization of a stochastic(i.e. random) process Economics 20- Prof anderson
Fixed Effects estimation When there is an observed fixed effect. an alternative to first differences is fixed effects estimation Consider the average over time of y Bx1+…+Bxik+a1+l The average of a, will be ai so if you subtract the mean. a will be differenced out just as when doing first differences Economics 20- Prof anderson
Simultaneity Simultaneity is a specific type of endogeneity problem in which the explanatory variable is jointly determined with the dependent variable 2 As with other types of endogeneity, IV estimation can solve the problem o Some special issues to consider with simultaneous equations modelS(SEM) Economics 20- Prof anderson
Mission of Economists Gary Becker: believe that the main purpose of economics is to understand and help to alleviate poverty\ Who are the poor? How can one help?
In the deliberations of scholars, policy analysts, and policy makers, power and influence. Yet the historical record shows that television has not changed the economics of attention not merely a fluke or just ironic. It points to a major impediment to the development of information societies. State-owned-and-controlled media can be an important policy lever for overcoming this opposition
