Intermediate microeconomics : A modern approach
Citations
8 citations
Cites background or methods from "Intermediate microeconomics : A mod..."
...This method allows identifying the impact of one independent variable on the decision variable, but it ignores the impact of other independent variables on the dependent variable (Varian 1999)....
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...Microeconomic theories have provided a profound foundation for such an analysis (Varian 1999)....
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8 citations
8 citations
8 citations
Cites background or methods from "Intermediate microeconomics : A mod..."
...We assume that data are normally distributed with u ∼ N(0, Ω), where Ω is the error covariance matrix. Since cross-sectional specifications of this type usually exhibit heteroscedasticity, we need to apply White’s correction mechanism when calculating the standard errors (White (1980))....
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...For estimation, we prefer a random effects model, since the fixed effects estimator eliminates all time-invariant explaining variables from the model (Verbeek (2004), chapter 10.2). However, an argument in favor of fixed effects panel data models would be the possibility to test the changing regional accessibility given fixed spatial structures. This corresponds well to the questions raised in the beginning of this book. Thus, we will also briefly refer to the fixed effects model. Following Verbeek (2004), the random effects model exploits two dimensions of the data, between regions and within regions between points in time....
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...It is derived via Shephard’s lemma6 and can be written as dr,i = ∂qr ∂kr,i = φ1−σ ( qr kr,i )σ , (3.13) 5We have zlk = 1 for l = k and zlk > 1 if k 6= l. 6See Varian (2006)....
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...where Ων is the error covariance matrix (see Kapoor et al. (2007) for details)....
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...For estimation, we prefer a random effects model, since the fixed effects estimator eliminates all time-invariant explaining variables from the model (Verbeek (2004), chapter 10....
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8 citations
Cites background or methods from "Intermediate microeconomics : A mod..."
...UK Energy Research Centre UKERC/WP/TPA/2007/014 This decomposition into a substitution and an income effect has been formalised in the ‘Slutsky equation’ (Varian, 1996)....
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...3 The inferior energy service would be termed a ‘Giffen good’ in this instance (Varian, 1996)....
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...…standard practice in microeconomics, the own price elasticity of useful work may be decomposed into a substitution effect and an income effect (Varian, 1996): Substitution effect: A decrease in the price of supplying useful work means that the rate at which the consumer can exchange…...
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