Monthly Archives: May 2018

How to compute the Lorenz Curve

In contrast to our previous post, that is the post that summarized the Lorenz Curve in general terms, this post details how to construct the Lorenz Curve and provides a hypothetical example in R. Advertisements

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The Lorenz Curve

The Lorenz Curve displays the actual income or wealth distribution of an economy. The concept was brought up by the American economist Max O. Lorenz in 1905. The curve represents a graphical representation of the income or wealth distribution of … Continue reading

Posted in Macroeconomics | Tagged , | 1 Comment

Cluster Robust Standard Errors in Stargazer

In a previous post, we discussed how to obtain clustered standard errors in R. While the previous post described how one can easily calculate cluster robust standard errors in R, this post shows how one can include cluster robust standard … Continue reading

Posted in Computing and Others, Econometrics | Tagged , , , , | 1 Comment

Robust Standard Errors in Stargazer

In a previous post, we discussed how to obtain robust standard errors in R. While the previous post described how one can easily calculate robust standard errors in R, this post shows how one can include robust standard errors in … Continue reading

Posted in Computing and Others, Econometrics | Tagged , , , , | 1 Comment

Omitted Variable Bias

The omitted variable bias is a common and serious problem in regression analysis. Generally, the problem arises if one does not consider all relevant variables in a regression. In this case, one violates the third assumption of the assumption of … Continue reading

Posted in Econometrics, Statistic | Tagged , , , | 7 Comments

Omitted Variable Bias: What can we do about it?

To deal with an omitted variables bias is not easy. However, one can try several things. First, one can try,

Posted in Econometrics, Statistic | Tagged , , , | 7 Comments

Multiple Regression in Julia

Julia presents various ways to carry out multiple regressions. One easy way is to use the lm() function of the GLM package. In this post I will present how to use the lm() and run OLS on the following model

Posted in Computing and Others, Econometrics, Statistic | Tagged , , , , | 1 Comment