Econometrics

Question 1

Frisch

Answer 1

1. Econometrics and identification methods

2. Model for business cycle theory

Question 2

Tinbergen

Answer 2

1. Larger numerical model estimation

2. Larger business cycle model with more equations - formulating anti-depression policies

Question 3

Haavelmo

Answer 3

1. methods used to estimate and test quantitative economic relations
2. Principles of econometrics: Autonomy, Identification and Simultaneity

Question 4

Granger

Answer 4

Cointegration - Two variables are both affected by a third variable, which leads to a
misinterpretation of their relationship (can detect this)

Question 5

Engle

Answer 5

Time varying volatility: Developed methods to study the volatility properties of time series in
economics ➔ ARCH-models

Question 6

Heckman

Answer 6

1. Intelligence is product of nature and nurture, which are hard to distinguish
   empirically. Ability is unevenly distributed, but it is not primarily driven by genetics.
2. Self-selection bias → Random assignment experiments.
3. Correction procedure: - Define the problem and ensure that researchers understand limitations of
   their findings
   - Developed statistical techniques to correct for bias ( working women vs. non-working women)

Question 7

McFadden

Answer 7

1. Showed how to statistically handle fundamental aspects of
   microdata
   - Discrete choice models: regression methods that take into account the binary
   nature of a variable of interest