Introduction Flashcards
1
Q
How do econometric tools help us?
A
enable conclusions to be drawn about the validity of our tory
understand to what extent our knowledge might be inconclusive
2
Q
What is cross sectional data?
A
between similar units
3
Q
What is time series data?
A
same unit over time
4
Q
What does the B0 and B1 mean in a linear regression?
A
Bo is the intercept - amount of crime with 0 foreigners
B1 is the slope - how many crimes can we expect if the share of foreigners goes up by 1% = this is the causal effect that we would be interested in
5
Q
What does the e term describe in a linear regression?
A
the error term or the residual
the gap between an conversation and the trend line
everything that the first term of the model cannot account for
6
Q
what is ceteris paribus?
A
other things equal
