Econometric model

SOME PRACTICAL GUIDANCE FOR THE IMPLEMENTATION OF PROPENSITY SCORE MATCHING Marco Caliendo IZA, Bonn Sabine Kopeinig University of Cologne Abstract. Propensity score matching (PSM) has become a popular approach to estimate causal treatment effects. It is widely applied when evaluating labour market policies, but empirical examples can be found in very diverse fields of study. Once the researcher has decided to use PSM, he is confronted with a lot of questions regarding its implementation. To begin

4. RESULTS The objective of this study is to investigate the causality relationship between inflation and unemployment in India. For this purpose we have used the standard econometric model of granger causality. But, before estimating the granger causality we must have check the stationary property of the variables. This is because if the variables are non-stationary then, the granger causality test may give misleading results.

Most of the evidence proved negative relationship between board size and firm performance. Q5 Method; Author used generalised method of moment (GMM) estimator which allows board size to adjust with past performance. Various regression model used; Fixed effect model which control unnoticed variables, GMM estimator.

dual banks, thus to ascertain how MLG work among the three categories, we re-run equation (1) by separating the sample to three sub-samples: Islamic banks (IBs); commercial banks (CBs); and dual banks (DBs). The results reported in models 2, 3, 4 in Table 6 and models 11, 12 and 13 in Table 7 respectively. The results are basically the same with slight different in the coefficients significant. Nevertheless there is negative impact of GOWN on risk disclosure however this relation is insignificant

Propensity-Score Matching (PSM) The propensity score matching model is a method used to evaluate the average effect of a programme on participants’ outcome, conditional on the pre-participation characteristics of such participants (Bryson, Dorsett, & Purdon, 2002). The PSM technique has been applied widely in a variety of fields in the program evaluation (Heinrich et al., 2010).The model is appropriate for addressing the problem of selection bias (Wooldridge, 2002) in determining the difference between

regression model would be used. Seven essential assumptions are made upon the classical linear regression model: (i) zero conditional mean, in which E(ui l Xi) = 0 (ii) Therefore, Cov (ui, xi) = 0 (iii) no serial correlation, such that Cov(ui, uj)=0 (iv) homoscedasticity, var(ui l xi) = sigma^2 (v) the regression model is correctly specified (vi) normally distributed error, ui ~ N(0, sigma^2) (vii) random sampling, Cov(xi, xj) = 0 Under these conditions, a multiple linear regression model is set

its spill-over effect in to 2009, in relation to the overall quarterly time series data from 1994 to 2014. Multiple linear regression results confirm while both foreign direct investments and U.S. investments abroad are critical components in the model, FDI is comparatively more important determining unemployment rate. Introduction The Globalization process have provided many benefits for both developed countries and developing countries. With recent breakdowns of economic barriers for countries

policy and the stock market. What factors have influenced interest rate and how the policymakers should react to the change in stock market have driven the increasing attentions lately. Taylor Rule (2003) will be the core theory used to discuss the model tested. The interpretation of simple Taylor rule is very straightforward. According to the equationi_t=c+β(π_t-π_t^* )+γ(y_t-y_t^* )+ε_t , the policy will be mainly affected by inflation gap and output gap. (Woodford, 2001) The reason why Taylor uses

that the answer to Part (a) requires the construction of a proper econometric model for the historical building approvals, which will in turn produce the answer to Part (b). Your report should have four sections. The “Executive Summary” section should contain a summary of your answers and conclusions to the client’s questions. In the “Main Report” section, you should report how you analyse the data, build and check the model, and produce the answers and conclusions. This section justifies

Research question Do managers ownership concentration affect firms ' investment policy? According to citet{agrawal1987managerial}, the firm 's specific risks have three effects on the insiders ' incentives. First, as a shareholder, insiders can benefit from the increased value of the equity claims if the firms invest in high risk and high return projects. Second, as risk-averse investors, insiders have lower certainty equivalent of human capital value if the firms have more volatile future cash flows