Econometric modeling

Chamberlain's approach to unobserved effects models

In linear panel analysis, it can be desirable to estimate the magnitude of the fixed effects, as they provide measures of the unobserved components. For instance, in wage equation regressions, Fixed Effects capture ability measures that are constant over time, such as motivation. 's approach to unobserved effects models is a way of estimating the linear unobserved effects, under Fixed Effect (rather than random effects) assumptions, in the following unobserved effects model where ci is the unobserved effect and xit contains only time-varying explanatory variables. Rather than differencing out the unobserved effect ci, Chamberlain proposed to replace it with the linear projection of it onto the explanatory variables in all time periods. Specifically, this leads to the following equation where the conditional distribution of ci given xit is unspecified, as is standard in Fixed Effects models. Combining these equations then gives rise to the following model. An important advantage of this approach is the computational requirement. Chamberlain uses minimum distance estimation, but a generalized method of moments approach would be another valid way of estimating this model. The latter approach also gives rise to a larger number of instruments than moment conditions, which leads to useful overidentifying restrictions that can be used to test the imposed by many static Fixed Effects models. Similar approaches have been proposed to model the unobserved effect. For instance, Mundlak follows a very similar approach, but rather projects the unobserved effect ci onto the average of all xit across all T time periods, more specifically It can be shown that the Chamberlain method is a generalization of Mundlak's model. The Chamberlain method has been popular in empirical work, ranging from studies trying to estimate the causal returns to union members to studies investigating , and estimating product characteristics in demand estimation. (Wikipedia).

Video thumbnail

Café Scientifique: The Power of the Placebo - Harnessing Placebo Effects to Improve Healthcare

Placebo effects are most often considered in the context of randomized controlled trials, in which an active drug or treatment is compared against an inert placebo treatment. This allows the factors that contribute to placebo effects to be separated from the medically active properties of

From playlist Cafe Scientifique

Video thumbnail

Spinodal decomposition in the Allen-Cahn equation without and with noise

This simulation compares solutions of the Allen-Cahn equation without and with noise. The left half of the display shows the case without noise, while the right half shows the case with an additional space-time white noise, meaning here that independent Gaussian random variables are added

From playlist Reaction-diffusion equations

Video thumbnail

Mateus Juda (7/29/20): Unsupervised features learning for sampled vector fields

Title: Unsupervised features learning for sampled vector fields Abstract: In this talk we introduce a new approach to computing hidden features of sampled vector fields. The basic idea is to convert the vector field data to a graph structure and use tools designed for automatic, unsupervi

From playlist AATRN 2020

Video thumbnail

Koopman Spectral Analysis (Multiscale systems)

In this video, we discuss recent applications of data-driven Koopman theory to multi-scale systems. arXiv paper: https://arxiv.org/abs/1805.07411 https://www.eigensteve.com/

From playlist Koopman Analysis

Video thumbnail

Lecture 9D : Introduction to the Bayesian Approach

Neural Networks for Machine Learning by Geoffrey Hinton [Coursera 2013] Lecture 9D : Introduction to the Bayesian Approach

From playlist Neural Networks for Machine Learning by Professor Geoffrey Hinton [Complete]

Video thumbnail

Queen Elizabeth II Speech: State Opening Of Parliament (1960) | British Pathé

Pathé News presents footage of the State Opening Of Parliament in 1960 whereby the Sovereign (Queen Elizabeth II), the House of Lords and the House of Commons meet together to formally start the parliamentary year with a speech from the Queen. For Archive Licensing Enquiries Visit: https

From playlist The Woman under the Crown: The Queen's Official Duties

Video thumbnail

Stanford Seminar - The Search Engine Manipulation Effect (SEME) and Its Unparalleled Power

"The Search Engine Manipulation Effect (SEME) and Its Unparalleled Power To Influence How We Think"- Robert Epstein of American Institute for Behavioral Research and Technology About the talk: An extensive study published in August 2015 in the Proceedings of the National Academy of Scienc

From playlist Engineering

Video thumbnail

Regression with Machine Learning with Jon Krohn

Jon Krohn provides practical real-world demonstrations of regression, a powerful, highly extensible approach to making predictions. He distinguishes independent from dependent variables and discusses linear regression to predict continuous variables, first with a single model feature, and

From playlist Talks and Tutorials

Video thumbnail

MAE5790-9 Testing for closed orbits

Techniques for ruling out closed orbits: index theory and Dulac's criterion. Techniques for proving closed orbits exist: Poincaré-Bendixson theorem. Trapping regions. Example in polar coordinates. Simple model of oscillatory glycolysis in metabolism. Nullclines. Reading: Strogatz, "Nonli

From playlist Nonlinear Dynamics and Chaos - Steven Strogatz, Cornell University

Video thumbnail

Statistical Rethinking 2022 Lecture 16 - Gaussian Processes

Slides and other course materials: https://github.com/rmcelreath/stat_rethinking_2022 Intro: https://www.youtube.com/watch?v=uYNzqgU7na4 Music: https://www.youtube.com/watch?v=kXuasY8pDpA Music: https://www.youtube.com/watch?v=eTtTB0nZdL0 Pause: https://www.youtube.com/watch?v=pxPdsqrQByM

From playlist Statistical Rethinking 2022

Video thumbnail

Counterfactual Fairness: Matt Kusner, The Alan Turing Institute

Dr Kusner is a Research Fellow at The Alan Turing Institute. He was previously a visiting researcher at Cornell University, under the supervision of Kilian Q Weinberger, and received his PhD in Machine Learning from Washington University in St Louis. His research is in the areas of counter

From playlist AI for Social Good

Video thumbnail

Statistical Rethinking 2023 - 18 - Missing Data

Course: https://github.com/rmcelreath/stat_rethinking_2023 Intro music: https://www.youtube.com/watch?v=RSsstXfcRWw Icebear music: https://www.youtube.com/watch?v=0h9tC3FM9UI Outline 00:00 Introduction 05:18 Missing data in DAGs 19:42 Bayesian imputation part 1 33:34 Pause 34:30 Bayesian

From playlist Statistical Rethinking 2023

Video thumbnail

The Blessings of Multiple Causes - David M. Blei

Seminar on Theoretical Machine Learning Topic: The Blessings of Multiple Causes Speaker: David M. Blei Affiliation: Columbia University Date: January 21, 2020 For more video please visit http://video.ias.edu

From playlist Mathematics

Video thumbnail

Critical Realism in Science and Religion? | Episode 1802 | Closer To Truth

What’s the world as it really is? Not filtered, not represented, not interpreted. Bedrock reality. Meaning and purpose, if any, depends on it. But can we know if what we perceive is bedrock reality? What is critical realism and how does it apply to science and theology? Featuring interview

From playlist Closer To Truth | Season 18

Video thumbnail

Statistical Rethinking 2022 Lecture 06 - Good & Bad Controls

Slides and other course materials: https://github.com/rmcelreath/stat_rethinking_2022 Intro video: https://www.youtube.com/watch?v=6erBpdV-fi0 Intro music: https://www.youtube.com/watch?v=Pc0AhpjbV58 Chapters: 00:00 Introduction 01:23 Parent collider 08:13 DAG thinking 27:48 Backdoor cri

From playlist Statistical Rethinking 2022

Video thumbnail

Statistical Rethinking 2023 - 06 - Good & Bad Controls

Course details: https://github.com/rmcelreath/stat_rethinking_2023 Intro music: https://www.youtube.com/watch?v=PDohhCaNf98 Outline 00:00 Introduction 01:43 Causal implications 14:28 do-calculus 16:59 Backdoor criterion 40:48 Pause 41:22 Good and bad controls 1:09:34 Summary 1:26:27 Bonu

From playlist Statistical Rethinking 2023

Video thumbnail

Statistical Rethinking 2023 - 16 - Gaussian Processes

Course: https://github.com/rmcelreath/stat_rethinking_2023 Intro music: https://www.youtube.com/watch?v=_3XGEsDSInM Outline 00:00 Introduction 02:37 Oceanic spatial confounds 09:54 Gaussian processes 24:26 Oceanic Gaussian process 33:51 Pause 34:37 Phylogenetic regression 1:18:39 Summary

From playlist Statistical Rethinking 2023

Video thumbnail

Challenging Common Assumptions in the Unsupervised Learning of Disentangled Representations

https://arxiv.org/abs/1811.12359 Abstract: In recent years, the interest in unsupervised learning of disentangled representations has significantly increased. The key assumption is that real-world data is generated by a few explanatory factors of variation and that these factors can be re

From playlist Deep Learning Architectures

Video thumbnail

Elina Robeva: "Hidden Variables in Linear Non-Gaussian Causal Models"

Tensor Methods and Emerging Applications to the Physical and Data Sciences 2021 Workshop III: Mathematical Foundations and Algorithms for Tensor Computations "Hidden Variables in Linear Non-Gaussian Causal Models" Elina Robeva - University of British Columbia Abstract: Identifying causal

From playlist Tensor Methods and Emerging Applications to the Physical and Data Sciences 2021

Video thumbnail

A Conceptual Approach to Controllability and Observability | State Space, Part 3

Check out the other videos in the series: https://youtube.com/playlist?list=PLn8PRpmsu08podBgFw66-IavqU2SqPg_w Part 1 - The state space equations: https://youtu.be/hpeKrMG-WP0 Part 2 - Pole placement: https://youtu.be/FXSpHy8LvmY Part 4 - What Is LQR Optimal Control: https://youtu.be/E_RD

From playlist State Space

Related pages

Panel analysis | First-difference estimator | Generalized method of moments