In the second post of the 10 Commandments of Applied Econometrics series we discussed the issue of embedding statistical tools in the context of business problems. Today, I will present another commandment related to exploration and inspecting the data.
The first post of the 10 Commandments of Applied Econometrics series discussed the importance of the use of common sense and understanding of the theory of econometrics in data analysis. Today, I will present the next two commandments related to putting the statistical tools in the business context of a problem. 2. Avoid type
It is no secret at all that there is a world of difference between theoretical and applied econometrics. Every analyst, as a practising econometrician, experiences this moment in their processional career – usually at the beginning of it – when the theory acquired during their academic time clashes with the practice. They