Economic (quatitative research methods) - Assignment Example

Summary
SECTION A 1. (a) What are the advantages of applying panel data analysis compared to using pure cross sectional or time series approaches to modelling data? [10 Marks] A panel data is a special type of pooled data in which a cross-sectional unit is surveyed over time (Gujarati 2004, p…

Extract of sample "Economic (quatitative research methods)"

Download file to see previous pages xxvii). Gujarati (2004, p. 562) pointed out that panel data models combine time series and cross-section observation. Being so, a panel data analysis combines the advantages of both cross sectional and time series approaches (Gujarati 2004, p. xxvii). Panel data analysis is highly feasible because panel data in the social sciences are available (Gujarati 2004, p. xxvii). In the time series data, one observes the values of one or several variables across time (Gujarati 2004, p. 636). In contrast, the values of the variables are collected for one or several sample units or entities at the same point in time (Gujarati 2004, p. 636). The other names for panel data are pooled data, combination of time series and cross-section data, micropanel data, longitudinal data, event history analysis, and cohort analysis (Gujarati 2004, p 636). From panel data, panel data regression models are constructed (Gujarati 2004, p. 634-637). Gujarati (2004, p. 636) reported that Baltagi cited the following advantages of panel data over cross section and timer series analysis: 1. Panel data can consider heterogeneity. 2. Panel data cover more variability, less collinearity, more degrees of freedom and more efficiency. 3. By being able to study cross section observations over time, panel data are better suited to study dynamics of change. 4. Panel data can discover and measure effects that are unobservable using either the pure cross-section or pure time-series analysis: the interrelationship or interaction of variables across time. 5. Panel data can be used to develop or analyze models that more complicated using either of the two pure models (cross-section and timer series). 6. Panel data can minimize that bias that can result from aggregating cases into broad aggregates. Gujarati (2004, p. 638) summarized Baltagi’s six point analysis of the advantages of panel data into this: panel data can improve analysis in ways not possible under cross-section and time series analysis. (b) Explain the intuition behind the fixed effect model (FEM) and describe the least square dummy variable (LSDV) and the time demeaned approaches to estimating a FEM. [30 Marks] According to Brooks (2008, p. 490), there are two kinds of estimation approaches to panel data in financial research: the fixed effects models and the random effects models. The simplest fixed effect allow the intercept in a regression to differ at a given point in time but not across time, while all of the slope estimates are fixed both at a given time moment and across time (Brooks 2008, p. 490). The fixed effect model is considered parsimonious compared to an alternative---the Seemingly Unrelated Regression (SUR) technique---in which each cross-section can have not only different intercepts but also different slopes for a regression (Brooks 2008, p. 490). In illustrating the fixed effect model, Brooks (2008, p. 490) used the equation uit = ui + vit where the disturbance term uit is decomposed into specific disturbance, ui, and “remainder disturbance”, vit, that changes over time and entities thereby supposedly capturing everything unexplained about yit. Based on this, Brooks (2008, p. 491) said that the usual regression function yit = ? + ?xit + uit becomes yit = ? + ?xit + ui + vit where ui represent all the variables that affect yit cross-sectionally or at a given time moment and which does not vary over time. As pointed out by Brooks, some examples of cross-sectional variables that can affect yit include a ...Download file to see next pagesRead More
Cite this document
• APA
• MLA
• CHICAGO
(“Economic (quatitative research methods) Assignment”, n.d.)
(Economic (quatitative Research Methods) Assignment)
https://studentshare.org/health-sciences-medicine/1405412-economic-quatitative-research-methods.
“Economic (quatitative Research Methods) Assignment”, n.d. https://studentshare.org/health-sciences-medicine/1405412-economic-quatitative-research-methods.
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic (quatitative research methods)

Research Methods

...﻿Section 3: Methodology Introduction Research can be a tedious process but the heart and soul of the study is the data derived from it since it is the one that provides the information from which new knowledge may be formed. This chapter details how such data is derived. It will identify the methods selected to be able to answer the main research question “How do teachers view the effect of instruction within the inclusion model for students with learning disabilities”. Specifically this study addresses the following: How does a full inclusion classroom setting serve to affect the relationship between the educator and his students (both with and without LDs)? What are the...
10 Pages(2500 words)Dissertation

Research Methods

...of private credit ratio having any effect at all on the GDP growth. 6. Final conclusion The results from table 3 actually reinforce the predictions obtained from the 1st specification (table 1). So, my recommendation for the finance minister remains unaltered. Based on the results of the obtained in table 3 (which I believe provide more valid inferences due to treating the non-normality problem that affected inferences in the 1st specification), I strongly recommend that the entire amount of money available be spent on policies that attempt to increase secondary enrolment. However before actually making the investment I would recommend an additional investigation: to research how effective the policies are in actually...
6 Pages(1500 words)Coursework

Research Methods

... Module Research Methods Describe the Steps in the Research Process. Why is the Research Process Useful to Researchers? A research process is a systematic procedure that is characterized by objectivity and gathering of a wide range of information for analysis after which a conclusion is drawn. The process is applicable in all evaluation projects. The study is documented in a systematic way that enables other people to follow the same procedure when undertaking the same study. A research process is a multiple-step process whereby all the steps are interlinked with each other. An effective research process is characterized by detailed basic steps undertaken with caution to prevent errors that can affect the results. The first step... and...
4 Pages(1000 words)Essay

Research Methods

...? Research Methods by The of the The of the The of the school The and where it is located Date Change of ownership relations, the progress of science and technology, the widespread dissemination of information and telecommunication technologies have dramatically changed the look of manufacturing and its socio-cultural environment, and resulted in a significant change in the culture of business organization. In addition, the transition to modern forms of management and governance imposes some new requirements, reflecting the present state of organizational culture, on entrepreneurs. The urgency of studying the problem of leadership as a sociological phenomenon is determined primarily by the fact that the...
11 Pages(2750 words)Essay

Research Methods

...on a wider perspective, by bringing together the assumptions of positivism paradigm and the constructivism paradigm (John, 2005). Methodology/Research strategy My project will make use of both qualitative and quantitative research methods. First-hand information method will include the use of personal interviews and well structured questionnaires with well-organized questions, which will be administered to employers and employees within organizations in different industries. I will use secondary data sources such as books and journals that look at the limitations of employees and employers performance in organizations, through analysis of theories and previous...
8 Pages(2000 words)Coursework

Quatitative vs Qualitative Research Study

...years, who spoke fluent Taiwanese and Mandarin and were at the III-V stages of CKD (Chen et al., 2011). Information regarding patients’ morbidity and CKD progression rates that were collected, represent quantitative characteristics. Out of the 54 patients, 27 were randomly selected and placed in the group of SMS, whereas the remaining were placed under the non-SMS group. This article is an example of quantitative research study and it uses the experimental study design, where “random assignment of subjects to experimental conditions and the use of experimental controls” takes place (Chapter 4: Quantitative and Qualitative Research. n.d. p. 43). Under this method, the sample is randomly...
4 Pages(1000 words)Research Paper

Research methods

...Analysis Tesco is the market leader in the retail industry of U K. (Figure 4) Revenue Analysis Revenue generated by Tesco is a lot more than the competitors. (Figure 5) Customer Experience As per research and analysis conducted by marketing Sciences the customer rating of overall shopping experiences is very good. (Figure 6) Online Sales Online Sales of Tesco has also witnessed a steady rise from the previous year. (Figure 7) External Environment Analysis Political The political condition of U.K. is very much stable. The political leaders of the country have welcomed business related investment making the country business friendly. Economic U.K. is one of the largest economies in the world. However the...
5 Pages(1250 words)Research Paper

Research methods (inferential methods)

...Research Methods Data Task Hypothesis: Science tend to be lazier than the other in the Methodology: Since the entire research is based on two sets of students, they can be differentiated between one another. Only inferential methods can be employed for the purpose. This hypothesis relates 'laziness' with the science students. Students can be science or otherwise. Therefore, it is a nominal measure. Variables for the purpose are Students course and mode of transport is a measure of laziness. An intervening variable of work pressure is also possible in this case. While the student's course is an independent variable the mode of transport used is a dependent variable. It is...
5 Pages(1250 words)Essay

Research Methods (new research methods and paradigms)

...such as economics, psychology or sociology. These sciences have long history of utilising quantitative methods. Besides, the expectations of government funding agencies are more in line with quantitative research approaches than qualitative (Hill and McGowan, 1999:5). Another explanation of 'quantitative domination' is the alleged "lack the rigor and objectivity of the quantitative approach" often associated with qualitative methodology (Patton and Appelbaum, 2003: 60). 1. Experiments Experiment is a typical quantitative research method that aims to provide a better understanding of the relationship between a causal hypothesis and a specific...
8 Pages(2000 words)Essay

The Influences of Media on the Law

...; a three-part formative evaluation programme was undertaken towards the end of the first phase of the campaign to identify the best components to use in the second phase of the campaign”. In the particular case the main issue under examination was, as already state above, the retrieval of the practical obligations of media when developing a particular advertising strategy. Towards this direction, the research described above focused mainly “on the responses of higher socio-economic persons while semi-quatitative studies with stakeholders and high socio-economic status women enabled a more in-depth examination of responses to the advertising; the research...
40 Pages(10000 words)Research Paper