13. Panel data Flashcards

1
Q

What method should we use to carry out policy analysis using data with a time and a cross-sectional dimension?

A

Use differences in differences method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How can an independently pooled cross-section be defined?

A
  • Random sampling from a large population
  • but not the same individuals or properties in each time period
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does pooling data mean?

A

Combining the data sets together

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How can we measure changes in our data using dummies?

A

Using time dummies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does the Chow test measure?

A

Does your model stay the same across two different periods. It measures the level of structural change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does the constant mean with dummy variables?

A

It means the people who don’t fall into any of those dummies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What do we have to assume to use the dif-in-dif model?

A

The parallel trends assumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the parallel trends assumption assume?

A

Difference in difference only works if the difference in outcomes between the two groups is not changed by other factors than the policy change (no differential trends)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly