Econometrics Exam 1: Ch 1-3

Cross-Sectional Data

Data on different entities (workers, consumers, firms, etc) in a single time period

Time Series Data

Data collected for the same entity for multiple time periods

Panel/Longitudinal Data

Data collected for multiple entities, where each entity is observed in 2 or more time periods

Observational Data

Data based on observing or measuring actual behavior

Econometrics can be defined as follows with the exception of

Measuring the height of economists

One of the primary advantages of using econometrics over typical results from economic theory is that:

It potentially provides you with quantitative answers for a policy problem rather than simply suggesting the direction (positive/negative) of the response

Data sets come in 3 Main Types:

Cross Sectional, Time Series, and Panel/Longitudianl

Randomized Controlled Experiment

Participants are randomly assigned to a control group with no treatment, or to a treatment group with treatment

Control Group

Group that does not receive treatment

Causal Effect

Expected effect of a given intervention or treatment on an outcome as measured in an ideal randomized controlled experiment

Experimental Data

Data obtained from an experiment designed to evaluate a treatment or policy or to investigate a causal effect

Prediction

Using info from one set of variables to make a quantitative statement about another

Forecast

Predicting future value of a variable using contemporaneous and historical info from that variable and others