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Re: st: cross-country analysis


From   saqlain raza <bhatti_sb@yahoo.com>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   Re: st: cross-country analysis
Date   Thu, 13 Oct 2011 08:10:08 -0700 (PDT)

You can come across to the unobserved heterogeneity. disadvantage


Saqlain RAZA
Doctorant of Agri Econometrics
Toulouse, France.


 


From: Maarten Buis <maartenlbuis@gmail.com>
To: statalist@hsphsun2.harvard.edu
Sent: Thursday, October 13, 2011 2:21 PM
Subject: Re: st: cross-country analysis

On Thu, Oct 13, 2011 at 1:50 PM, Humaira Asad wrote:
> Can somebody suggest some references that explain the econometrical advantages and disadvantages of doing a cross-country analysis.

As so often in statistics the advantage is its own disadvantage:

The advantage of including multiple countries is that that way we get
more variance, which is good because we find effects by comparing
different groups, which is impossible if people/firms/cows/whatever
are all (almost) the same.

The disadvantage of including multiple countries is that that way we
get more variance, which is bad because we want to compare like with
like.

-- Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany


http://www.maartenbuis.nl
--------------------------
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