Chapter 1 Flashcards
Causal Effect
A ceteris paribus change in one variable has an effect on another variable.
Ceteris Paribus
All other relevant factors are held fixed.
Cross-Sectional Data Set
A data set collected by sampling a population at a given point in time.
Data Frequency
The interval at which time series data are collected. Yearly, quarterly, and monthly are the most common data frequencies.
Econometric Model
An equation relating the dependent variable to a set of explanatory variables and unobserved disturbances, where unknown population parameters determine the ceteris paribus effect of each explanatory variable.
Economic Model
A relationship derived from economic theory or less formal economic reasoning.
Empirical Analysis
A study that uses data in a formal econometric analysis to test a theory, estimate a relationship, or determine the effectiveness of a policy.
Experimental Data
Data that have been obtained by running a controlled experiment.
Non-experimental Data
Data that have not been obtained through a controlled experiment.
Observational Data
See non-experimental data.
Panel Data
A data set constructed from repeated cross sections over time. With a balanced panel, the same units appear in each time period. With an unbalanced panel, some units do not appear in each time period, often due to attrition.
Pooled Cross Section
A data configuration where independent cross sections, usually collected at different points in time, are combined to produce a single data set.
Random Sampling
A sampling scheme whereby each observation is drawn at random from the population. In particular, no unit is more likely to be selected than any other unit, and each draw is independent of all other draws.
Retrospective Data
Data collected based on past, rather than current, information.
Time Series Data
Data collected over time on one or more variables.
