ŒInference & speci–cation tests ŒIV estimation in practice - problems posed by weak & invalid instruments. 194-206 ISSN: 0304-4076 Subject: computer software, diagnostic techniques, econometric models, economic analysis, economic theory, empirical research, regression analysis, researchers Abstract: Replications and robustness checks are key elements of the scientific method and a staple in many disciplines. Robustness checks and robustness tests in applied economics Author: Lu, Xun, White, Halbert Source: Journal of econometrics 2014 v.178 pp. 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. DeepDyve is the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. One of the main purposes of this paper is to argue that different strategies rely on different criteria for justifications. CiteScore: 3.7 ℹ CiteScore: 2019: 3.7 CiteScore measures the average citations received per peer-reviewed document published in this title. Google Scholar | Crossref. 4 provide the detail about econometric methodology and Sect. 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 : … 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. DOI: 10.1016/J.JECONOM.2013.08.016 Corpus ID: 14937433. Journal of Econometrics 178 (2014): 194-206). Is anyone familiar with such a function in Strata? Journal of Cleaner Production 197: 972 – 991. JOURNAL OF APPLIED ECONOMETRICS J. Appl. They use "Testrob" in Matlab. We show that accounting for trends changes the conclusions in the study of Chapman et al. 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. 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. (2018) Framing the triple bottom line approach: direct and mediation effects between economic, social and environmental elements. 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. The QBP test will not be discussed in this study because the QLB test is already a finite-sample-corrected QBP test. 20, issue 4, pages 111-132 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 . The literature can be roughly divided in two historical phases. Lu, X, White, H (2014) Robustness checks and robustness tests in applied economics. 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 Join us! Chapter 4 Checking for Robustness. The book also discusses A key variable in such a strategy is frequently the outcome of interest in a period before the treatment took place. The results of the different tests of robustness are discussed in Section 4. I would like to conduct some robustness checks in Stata (by using the method of Lu and White (2013) - Lu, Xun, and Halbert White. 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. The similar types of analyses were done also by Alkire and Foster (2011a,b); Alkire et al. Rest of the paper is organized as: Sect. 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. Department of Economics, University of London, UK March 26, 2012 JEL classification: C15, C22. Robustness. This book presents recent research on robustness in econometrics. Replications and robustness checks are key elements of the scientific method and a staple in many disciplines. "Robustness checks and robustness tests in applied economics." The literature can be roughly divided in two historical phases. 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} } For this purpose, we conduct a Monte Carlo simulation to assess finite sample performance of the QLB and QML tests. 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. 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. Kuorikoski, Jaakko; Lehtinen, Aki; Marchionni, Caterina (2007-09-25). Downloadable! 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. (2015), Weziak-Bialowolska (2016). Journal of Econometrics, 2014, vol. 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. Section 5 concludes. Hi! 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.. 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 . External links. 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. 2 presents infrastructure services and trade in South Asia, Sect. 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". Further Robustness Checks One, we address concerns that differences in the level of financial sector development may affect our result. 2. Robustness checks and robustness tests in applied economics. 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 the philosophy of science and epistemology literature, robustness analysis has become an umbrella term that refers to a variety of strategies. Foster et al. 178, issue P1, 194-206 . 6 shows robustness check with alternative methodologies, while conclusion and policy implications is accommodated in … 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. 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. 5 consists of results and discussion, Sect. 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. by users. 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. Kind regards, Maria Grey 3 reports data source and description of the variables, Sect. Xun Lu and Halbert White. Because the problem is with the hypothesis, the problem is not addressed with robustness checks. However, some basic assumptions are difficult to check, and they are too often accepted in econometric studies without serious examination. Robustness testing allows researchers to explore the stability of their main estimates to plausible variations in model specifications. CiteScore values are based on citation counts in a range of four years (e.g. Our results reveal the following. Many studies utilize time series methods to identify causal effects without accounting for an underlying time trend. (JAMA, 316(3), 291–299, 2016), who evaluated the impact of the Australian firearm law in 1996. ... Høgevold, N, et al. (2012) assess robustness of 2004 HDI to weights using 11/20 to investigate the robustness of these Q tests in these situations. Key words: non-linearity testing, Monte Carlo experiments. Robustness checks involve reporting alternative specifications that test the same hypothesis. The simulation results show that distributional 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. (Hint: for a more complicated simulation study, see LM Robustness.r.) 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