Log Growth Rates: Stop Doing That

In economics and also widely in statistics and data science, it is considered acceptable to use log growth rates. In fact, you would have a hard time passing my intro Ph.D. macro class without them. But they shouldn’t be used. The validity of how log growth rates are often used depends on a simplification. The … Read more

The Endogeneity Problem of Fat Women

This article explains what an endogeneity problem is and an easy way to remember what it means. Variables in a mathematical model are either endogenous or exogenous. Exogenous, with the prefix exo- for outside or outer, are variables which come from outside of the model. In other words, they are given or assumed. Endogenous, with … Read more

Statistics Evolved

This article will attack two problems in statistics. The two problems are the selection bias in sampling and the arbitrary nature of common alpha levels. Most statisticians know that the ideal way to sample is a simple random sample, but what if that simple random sample is arguably not representative of the whole population? The … Read more