(Hint: for a more complicated simulation study, see LM Robustness.r.) Robustness checks and robustness tests in applied economics @article{Lu2014RobustnessCA, title={Robustness checks and robustness tests in applied economics}, author={X. Lu and H. White}, journal={Journal of Econometrics}, year={2014}, volume={178}, pages={194-206} } Empirical Methods in Applied Economics Lecture Notes Jörn-Ste⁄en Pischke LSE October 2005 1 Di⁄erences-in-di⁄erences 1.1 Basics The key strategy in regression was to estimate causal e⁄ects by controlling for confounding factors. However, some basic assumptions are difficult to check, and they are too often accepted in econometric studies without serious examination. "Robustness checks and robustness tests in applied economics." ... Høgevold, N, et al. Lu, X, White, H (2014) Robustness checks and robustness tests in applied economics. A key variable in such a strategy is frequently the outcome of interest in a period before the treatment took place. Kind regards, Maria Grey External links. Robustness checks and robustness tests in applied economics Author: Lu, Xun, White, Halbert Source: Journal of econometrics 2014 v.178 pp. Robustness Checks and Robustness Tests in Applied Economics Halbert White Xun Lu Department of Economics University of California, San Diego June 18, 2010 Abstract A common exercise in empirical studies is a "robustness check," where the researcher examines how certain "core" regression coe¢ cient estimates behave when the regression speci°cation is modi°ed by adding or removing regressors. Xun Lu and Halbert White. Robustness checks involve reporting alternative specifications that test the same hypothesis. 3 reports data source and description of the variables, Sect. Abstract The paper examines the robustness of the size and power properties of the stan-dard non-linearity tests under different conditions such as moment failure and asymmetry of innovations. Structural model robustness checks in PLS-SEM Marko Sarstedt, Christian M Ringle, Jun-Hwa Cheah, Hiram Ting, Ovidiu I Moisescu, and Lacramioara Radomir Tourism Economics 2019 26 : … Department of Economics, University of London, UK March 26, 2012 JEL classification: C15, C22. Journal of Econometrics 178 (2014): 194-206). In his keynote address at the 7th SBI Banking and Economics Conclave, RBI Governor Shaktikanta Das said that the "novel coronavirus pandemic is so far the "biggest test of robustness and resilience of our [India's] economic and financial system". We've already gone over the robustness test of adding additional controls to your model to see what changes - that's not a specialized robustness test. In economics, robustness is the ability of a financial trading system to remain effective under different markets and different market conditions, or the ability of an economic model to remain valid under different assumptions, parameters and initial conditions.. Robustness checks and robustness tests in applied economics. Once you have assessed and improved the computational reproducibility of the display items for a claim within a paper, you can assess the robustness of these results by modifying some analytic choices and reporting their subsequent effects on the estimates of interest, i.e. They use "Testrob" in Matlab. robustness tests suggesting that 85 % of pair-wise comparisons were the same if the weights on each dimension varied between 25 % and 50 % of the total. by users. Section 5 concludes. This book presents recent research on robustness in econometrics. This highly accessible book presents the logic of robustness testing, provides an operational definition of robustness that can be applied in all quantitative research, and introduces readers to diverse types of robustness tests. Replications and robustness checks are key elements of the scientific method and a staple in many disciplines. Our results reveal the following. 20, issue 4, pages 111-132 Journal of Econometrics, 2014, vol. Google Scholar | Crossref. The similar types of analyses were done also by Alkire and Foster (2011a,b); Alkire et al. The results of the different tests of robustness are discussed in Section 4. 178, issue P1, 194-206 . Foster et al. Is anyone familiar with such a function in Strata? DOI: 10.1016/J.JECONOM.2013.08.016 Corpus ID: 14937433. In the philosophy of science and epistemology literature, robustness analysis has become an umbrella term that refers to a variety of strategies. Replications and robustness checks are key elements of the scientific method and a staple in many disciplines. Further Robustness Checks One, we address concerns that differences in the level of financial sector development may affect our result. The QBP test will not be discussed in this study because the QLB test is already a finite-sample-corrected QBP test. To some extent, the development of diagnostic and specification tests provides the capacity to make these checks, and good econometric studies use these tests. One of the main purposes of this paper is to argue that different strategies rely on different criteria for justifications. Downloadable! 2 presents infrastructure services and trade in South Asia, Sect. Make a simulation study of the robustness of the t-test under various assumptions, and find 1 specifications with far from normal distributions where the t-test performs well; 2 specifications where the t-test performs poorly. We show that accounting for trends changes the conclusions in the study of Chapman et al. Robustness testing allows researchers to explore the stability of their main estimates to plausible variations in model specifications. Because the problem is with the hypothesis, the problem is not addressed with robustness checks. to investigate the robustness of these Q tests in these situations. 5 consists of results and discussion, Sect. DeepDyve is the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. Hi! Abstract: A common exercise in empirical studies is a “robustness check”, where the researcher examines how certain “core” regression coefficient estimates behave when the regression specification is modified by adding or removing regressors. The simulation results show that distributional CiteScore values are based on citation counts in a range of four years (e.g. In this paper we report the results of an investigation of the t‐test's robustness when applied to data of this form for samples of sizes 5 to 20. (2018) Framing the triple bottom line approach: direct and mediation effects between economic, social and environmental elements. Rest of the paper is organized as: Sect. Econ., 13, 361-375 (1998) ROBUSTNESS TESTS OF THE AUGMENTED SOLOW MODEL JONATHAN R. W. TEMPLE* Hertford College, Oxford OX] 3BW, and Institute of Economics and Statistics, Manor Road, Oxford OXI 3UL SUMMARY This paper demonstrates some techniques for testing the robustness of cross-section and panel data (JAMA, 316(3), 291–299, 2016), who evaluated the impact of the Australian firearm law in 1996. 194-206 ISSN: 0304-4076 Subject: computer software, diagnostic techniques, econometric models, economic analysis, economic theory, empirical research, regression analysis, researchers Abstract: Key words: non-linearity testing, Monte Carlo experiments. Join us! ŒInference & speci–cation tests ŒIV estimation in practice - problems posed by weak & invalid instruments. Economics Series Robustness of the CUSUM and CUSUM-of-Squares Tests to Serial Correlation, Endogeneity and Lack of Structural Invariance Some Monte Carlo Evidence Guglielmo Maria Caporale, Nikitas Pittis . We’re seeking your support as we push the limits in neuroscience, population science and emerging conflict research, because solutions to some of society’s greatest challenges lie in our ability to break the mold, to be boundaryless. (2012) assess robustness of 2004 HDI to weights using 4 provide the detail about econometric methodology and Sect. (2015), Weziak-Bialowolska (2016). I would like to conduct some robustness checks in Stata (by using the method of Lu and White (2013) - Lu, Xun, and Halbert White. Robustness. On the Robustness of Robustness Checks of the Environmental Kuznets Curve by Marzio Galeotti (University of Milan and Fondazione Eni Enrico Mattei) Matteo Manera (University of Milan-Bicocca and Fondazione Eni Enrico Mattei) Alessandro Lanza (Eni S.p.A. and Fondazione Eni Enrico Mattei) Abstract . CiteScore: 3.7 ℹ CiteScore: 2019: 3.7 CiteScore measures the average citations received per peer-reviewed document published in this title. The literature can be roughly divided in two historical phases. References: Wooldridge (2002), Chapters 5; 6.2; 8 and 14 Murray, Michael P.(2006) "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, 2006, vol. For this purpose, we conduct a Monte Carlo simulation to assess finite sample performance of the QLB and QML tests. Some African countries have a well-developed financial sector than other African countries and these differences may impact the non-discretionary determinants of bank provisions in the region. JOURNAL OF APPLIED ECONOMETRICS J. Appl. Kuorikoski, Jaakko; Lehtinen, Aki; Marchionni, Caterina (2007-09-25). 6 shows robustness check with alternative methodologies, while conclusion and policy implications is accommodated in … Our approach consists of complete enumeration of the sampling distributions and comparison of actual levels of significance with the significance level expected if the data followed a normal distribution. Since its first inception in the debate on the relationship between environment and growth in 1992, the Environmental Kuznets Curve has been subject of continuous and intense scrutiny. The empirical literature that has aimed at finding the factors that can explain variation in economic growth has predominantly made use of simple linear cross-section regression equations. Robust data processing techniques – i.e., techniques that yield results minimally affected by outliers – and their applications to real-life economic and financial situations are the main focus of this book. 11/20 2. The literature can be roughly divided in two historical phases. Many studies utilize time series methods to identify causal effects without accounting for an underlying time trend. Journal of Cleaner Production 197: 972 – 991. Chapter 4 Checking for Robustness. The book also discusses On the Robustness of Robustness Checks of the Environmental Kuznets Curve Summary Since its first inception in the debate on the relationship between environment and growth in 1992, the Environmental Kuznets Curve has been subject to continuous and intense scrutiny.
robustness checks and robustness tests in applied economics