14 lines
1.0 KiB
TeX
14 lines
1.0 KiB
TeX
\begin{frame}{Econometric Model}
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\begin{equation}\label{SimpleRegModel}
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Price_{i,t}=\theta_{s(t)}\cdot Sbd1_{i}+\tau_{t}+\beta_{i,t}\cdot X_{i,t}+\epsilon_{i,t}
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\end{equation}
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Where \(Price_{i,t}\) is the sale price of parcels \( i \in I \) across time periods \( t \in T \). \(Sbd1_{i}\) is a dummy variable indicating that a parcel is in Subdistrict 1. \(\theta_{s(t)}\) are the policy fixed effects of interest. \(\tau_t\) is a time period fixed effect, and \(X_{i,t}\) controls an array of variables that influence the market price of farms.
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\begin{equation}\label{SimpleFixedModel}
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Price_{i,t}=\theta_{s(t)}\cdot Sbd1_{i}+\tau_{t}+\alpha_{i}+\beta_{i,t}\cdot X_{i,t}+\epsilon_{i,t}
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\end{equation}
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This model pulls out time invariant attributes of parcels into \(\alpha_{i}\), for each parcel with repeat sales the omitted time invariant effects are captured by this term\footnote{The need to have multiple sales across the shocks limits the dataset, so equation \eqref{SimpleFixedModel} is only applied to regressions over the entire time series.}.
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\end{frame}
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