Week 4B Flashcards
1
Q
What are Asymptotic Properties of OLS?
A
- As sample size grows Var(B^) decreases
- Estimator converges to true value
2
Q
What is a Consistent Estimator?
A
An estimator that’s variance decreased as sample size increases
- Satisfied when MLR1 to MLR4 are satisfied
3
Q
What is Asymptotic Normality?
A
That in large samples, the estimators are normally distributed and MLR 5 is no longer needed
4
Q
What are the pros and cons of logs function forms
A
- Good at mitigating outliers (example: using income as an estimator)
- Help with normality and Homoskedasticity
Cons:
Can’t be used for level measurements (years, percentages ect)
Cant be used for negative or 0 numbers
5
Q
What is the average partial effect?
A
Summary of all partial effects for each unit across whole sample and average.
6
Q
What are Bad controls
A
Including a regressor that is a mechanism of the regressor of interest
7
Q
What is over controlling?
A
Including too many regressors
