Empirical Tools (ch 3)The fundamental issue faced by those doing empirical work in economics is
disentangling causalityfrom correlation
A. Randomized Trials (Measuring Causation with Data We¶d Like to Have)
is the ____________ type of experiment for testing causality.A group of individuals is randomly divided into two groups:1. ______________________________ who receives the treatment of interest2. ______________________________ which does not
refers to any source of difference between the groups that is _________________________ with the treatment but is not due to the treatment.The reason that randomized trials are the ³gold standard´ for empirically testing causal effectsis___________________________________________________.
. Observational Data (Estimating Causation with Data We Actually Get)
refers to data that is generated by _____________________________ observed inthe ___________________________, not in the context of a designed experiment.1.
Time Series Analysis
documents the _____________________________ between the variables of interest over time.
Time Series analysis is
if there are ____________________________ in the timeseries that are not related to other factors that can cause _________.2.
Cross-Sectional Regression Analysis
is a method for assessing the ________________________ between two variables while holding other factors ________________________.- a
means comparing many observations at __________________________ rather than outcomes ___________________________.
describes the relationship between the variable you would like to explain (the __________________ variable) and the set of variables that you think might do the explaining (the __________________ variables).