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Book part
Publication date: 19 December 2012

Lee C. Adkins and Mary N. Gade

Monte Carlo simulations are a very powerful way to demonstrate the basic sampling properties of various statistics in econometrics. The commercial software package Stata

Abstract

Monte Carlo simulations are a very powerful way to demonstrate the basic sampling properties of various statistics in econometrics. The commercial software package Stata makes these methods accessible to a wide audience of students and practitioners. The purpose of this chapter is to present a self-contained primer for conducting Monte Carlo exercises as part of an introductory econometrics course. More experienced econometricians that are new to Stata may find this useful as well. Many examples are given that can be used as templates for various exercises. Examples include linear regression, confidence intervals, the size and power of t-tests, lagged dependent variable models, heteroskedastic and autocorrelated regression models, instrumental variables estimators, binary choice, censored regression, and nonlinear regression models. Stata do-files for all examples are available from the authors' website http://learneconometrics.com/pdf/MCstata/.

Details

30th Anniversary Edition
Type: Book
ISBN: 978-1-78190-309-4

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Abstract

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Applied Structural Equation Modelling for Researchers and Practitioners
Type: Book
ISBN: 978-1-78635-882-0

Open Access
Article
Publication date: 30 September 2019

Victor Motta

The purpose of this study is to account for a recent non-mainstream econometric approach using microdata and how it can inform research in business administration. More…

6881

Abstract

Purpose

The purpose of this study is to account for a recent non-mainstream econometric approach using microdata and how it can inform research in business administration. More specifically, the paper draws from the applied microeconometric literature stances in favor of fitting Poisson regression with robust standard errors rather than the OLS linear regression of a log-transformed dependent variable. In addition, the authors point to the appropriate Stata coding and take into account the possibility of failing to check for the existence of the estimates – convergency issues – as well as being sensitive to numerical problems.

Design/methodology/approach

The author details the main issues with the log-linear model, drawing from the applied econometric literature in favor of estimating multiplicative models for non-count data. Then, he provides the Stata commands and illustrates the differences in the coefficient and standard errors between both OLS and Poisson models using the health expenditure dataset from the RAND Health Insurance Experiment (RHIE).

Findings

The results indicate that the use of Poisson pseudo maximum likelihood estimators yield better results that the log-linear model, as well as other alternative models, such as Tobit and two-part models.

Originality/value

The originality of this study lies in demonstrating an alternative microeconometric technique to deal with positive skewness of dependent variables.

Details

RAUSP Management Journal, vol. 54 no. 4
Type: Research Article
ISSN: 2531-0488

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Book part
Publication date: 19 December 2012

Jenny N. Lye and Joseph G. Hirschberg

In this chapter we demonstrate the construction of inverse test confidence intervals for the turning-points in estimated nonlinear relationships by the use of the marginal…

Abstract

In this chapter we demonstrate the construction of inverse test confidence intervals for the turning-points in estimated nonlinear relationships by the use of the marginal or first derivative function. First, we outline the inverse test confidence interval approach. Then we examine the relationship between the traditional confidence intervals based on the Wald test for the turning-points for a cubic, a quartic, and fractional polynomials estimated via regression analysis and the inverse test intervals. We show that the confidence interval plots of the marginal function can be used to estimate confidence intervals for the turning-points that are equivalent to the inverse test. We also provide a method for the interpretation of the confidence intervals for the second derivative function to draw inferences for the characteristics of the turning-point.

This method is applied to the examination of the turning-points found when estimating a quartic and a fractional polynomial from data used for the estimation of an Environmental Kuznets Curve. The Stata do files used to generate these examples are listed in Appendix A along with the data.

Book part
Publication date: 18 January 2022

Badi H. Baltagi, Georges Bresson, Anoop Chaturvedi and Guy Lacroix

This chapter extends the work of Baltagi, Bresson, Chaturvedi, and Lacroix (2018) to the popular dynamic panel data model. The authors investigate the robustness of…

Abstract

This chapter extends the work of Baltagi, Bresson, Chaturvedi, and Lacroix (2018) to the popular dynamic panel data model. The authors investigate the robustness of Bayesian panel data models to possible misspecification of the prior distribution. The proposed robust Bayesian approach departs from the standard Bayesian framework in two ways. First, the authors consider the ε-contamination class of prior distributions for the model parameters as well as for the individual effects. Second, both the base elicited priors and the ε-contamination priors use Zellner’s (1986) g-priors for the variance–covariance matrices. The authors propose a general “toolbox” for a wide range of specifications which includes the dynamic panel model with random effects, with cross-correlated effects à la Chamberlain, for the Hausman–Taylor world and for dynamic panel data models with homogeneous/heterogeneous slopes and cross-sectional dependence. Using a Monte Carlo simulation study, the authors compare the finite sample properties of the proposed estimator to those of standard classical estimators. The chapter contributes to the dynamic panel data literature by proposing a general robust Bayesian framework which encompasses the conventional frequentist specifications and their associated estimation methods as special cases.

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Essays in Honor of M. Hashem Pesaran: Panel Modeling, Micro Applications, and Econometric Methodology
Type: Book
ISBN: 978-1-80262-065-8

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Book part
Publication date: 29 May 2009

Krishna Pendakur

Lewbel and Pendakur (2009) developed the idea of implicit Marshallian demands. Implicit Marshallian demand systems allow the incorporation of both unobserved preference…

Abstract

Lewbel and Pendakur (2009) developed the idea of implicit Marshallian demands. Implicit Marshallian demand systems allow the incorporation of both unobserved preference heterogeneity and complex Engel curves into consumer demand analysis, circumventing the standard problems associated with combining rationality with either unobserved heterogeneity or high rank in demand (or both). They also developed the exact affine Stone index (EASI) implicit Marshallian demand system wherein much of the demand system is linearised and thus relatively easy to implement and estimate. This chapter offers a less technical introduction to implicit Marshallian demands in general and to the EASI demand system in particular. I show how to implement the EASI demand system, paying special attention to tricks that allow the investigator to further simplify the problem without sacrificing too much in terms of model flexibility. STATA code to implement the simplified models is included throughout the text and in an appendix.

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Quantifying Consumer Preferences
Type: Book
ISBN: 978-1-84855-313-2

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Book part
Publication date: 20 September 2021

John R. Busenbark, Kenneth A. Frank, Spiro J. Maroulis, Ran Xu and Qinyun Lin

In this chapter, we explicate two related techniques that help quantify the sensitivity of a given causal inference to potential omitted variables and/or other sources of…

Abstract

In this chapter, we explicate two related techniques that help quantify the sensitivity of a given causal inference to potential omitted variables and/or other sources of unexplained heterogeneity. In particular, we describe the Impact Threshold of a Confounding Variable (ITCV) and the Robustness of Inference to Replacement (RIR). The ITCV describes the minimum correlation necessary between an omitted variable and the focal parameters of a study to have created a spurious or invalid statistical inference. The RIR is a technique that quantifies the percentage of observations with nonzero effects in a sample that would need to be replaced with zero effects in order to overturn a given causal inference at any desired threshold. The RIR also measures the percentage of a given parameter estimate that would need to be biased in order to overturn an inference. Each of these procedures is critical to help establish causal inference, perhaps especially for research urgently studying the COVID-19 pandemic when scholars are not afforded the luxury of extended time periods to determine precise magnitudes of relationships between variables. Over the course of this chapter, we define each technique, illustrate how they are applied in the context of seminal strategic management research, offer guidelines for interpreting corresponding results, and delineate further considerations.

Article
Publication date: 16 May 2020

Uchechukwu M. Chukwuocha, Greg N. Iwuoha, Chisom M. Ogara and Ikechukwu N.S. Dozie

This study assessed the effectiveness of malaria classroom corner (MCC), school-based intervention in the promotion of basic malaria awareness and common control practices…

Abstract

Purpose

This study assessed the effectiveness of malaria classroom corner (MCC), school-based intervention in the promotion of basic malaria awareness and common control practices among children of primary school age.

Design/methodology/approach

A quasi-experimental design was employed, involving 206 children of primary 5 and 6 classes from two randomly selected public primary schools in Owerri, South Eastern Nigeria. The MCC was designed and set up in the intervention school (with 103 children) while the control school (with 103 children) was offered malaria health talk. Structured pre-tested questionnaire was used to collect data pre- and post-intervention in both schools. Data was analysed using Statistical Package – Stata version 14.1 (Stata Corp, College Station, TX, USA).

Findings

Results show that there was a significant enhancement of basic malaria awareness (p = 0.0003) and common preventive and management practices (p = 0.0202) among children in the intervention primary school compared to those in the control primary school.

Research limitations/implications

The study did not account for actual behaviour change, as its scope was within basic malaria awareness and common control practices.

Practical implications

This approach could enhance awareness and proactiveness of school children towards malaria prevention and overall health consciousness.

Social implications

This could help in achieving a healthy population of school children with a positive effect on their school performance.

Originality/value

The MCC could provide a simple, participatory and effective approach for the promotion of basic malaria awareness and common control practices among primary school-age children in malaria endemic areas. Such children could, in turn, become malaria conversation drivers and behaviour change agents in their homes and communities, thereby contributing to the malaria elimination efforts.

Details

Health Education, vol. 120 no. 1
Type: Research Article
ISSN: 0965-4283

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Article
Publication date: 2 March 2015

Weiqi Dai, Ilan Alon and Hao Jiao

The paper aims to empirically examine the role of intra-national institutions in business performance. In particular, the article develops hypotheses regarding financial…

Abstract

Purpose

The paper aims to empirically examine the role of intra-national institutions in business performance. In particular, the article develops hypotheses regarding financial marketization and business venturing with organizational slack and political connections as moderating variables.

Design/methodology/approach

The authors choose listed firms from the pharmaceutical industry in China and focus on the period of 2001-2009. Results from the Hausman specification test indicate that the random effects model is appropriate for data. Because the dependent variable is dichotomous, the random effects logistic regression technique in Stata is used. To check the robustness of the estimation, the random-effects Tobit regression technique in Stata is also used. Overall, models are robust and statistically significant.

Findings

It was found that the level of regional financial sector marketization is positively associated with the likelihood of engaging in corporate venturing by firms within the region. Moreover, it was found that organizational slack significantly decreases the institutional influence on corporate venturing.

Originality/value

This study is one of the first to theorize and empirically test the impact of intra-national institutions on corporate venturing in China’s pharmaceutical industry. Institutions matter more when organizational slack is low. Firms in the pharmaceutical industry in China do not seem completely dependent on political connections for business venturing and use organizational slack to buffer against (adverse) institutional change.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 7 no. 1
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 9 October 2019

Alireza Akbari

The purpose of this paper is to measure the degree of item difficulty in translation multiple-choice items in terms of 1-parameter logistic (1-PL) model of the item…

Abstract

Purpose

The purpose of this paper is to measure the degree of item difficulty in translation multiple-choice items in terms of 1-parameter logistic (1-PL) model of the item response theory (IRT). Also, the paper proposes a hypothesis in which a participant who answers a translation test possesses some amount of translation competence which affects the end-result.

Design/methodology/approach

In total, 150 translation students from the Bachelor of Arts in Translation Studies from the three Iranian universities participated in this research paper. The translation participants were requested to answer the questions. The items were formulated in such a way that the question was stated in English and the four choices were written in Farsi. To interpret the obtained results, this research paper employed 1-PL and 2-parameter logistic (2-PL) models using Stata (2016). In addition, to demonstrate results in terms of 1-PL, item characteristic curves (a graphical representation showing the degree of difficulty of each item) was used.

Findings

Using Stata platform, the findings of this research paper showed that through the application of IRT, evaluators were able to calculate the difficulty degree of each items (1-PL) and correspondingly the translation competence (2-PL) of each participant.

Research limitations/implications

One of the limitations is the proportionately small number of translation participants at the Bachelor of Arts.

Originality/value

Although a few number of studies concentered on the role of translation competence, there did not exist any research focusing on translation competence empirically in higher education.

Details

Journal of Applied Research in Higher Education, vol. 12 no. 3
Type: Research Article
ISSN: 2050-7003

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1 – 10 of over 4000