Who Cheats on their Spouse and What Makes Marriages Happy? – Multinomial Logit and Probit Regression Analysis

BACKGROUND In 1978, Ray C. Fair from Yale University, extended the microeconomic framework to study why people have affairs. The paper creates an econometric model grounded in Utility theory. In economics, Utility Theory describes how people consume goods/services based off their costs, price and availability of substitute goods, price and availability of complementary goods, and … More Who Cheats on their Spouse and What Makes Marriages Happy? – Multinomial Logit and Probit Regression Analysis

Programming in R: Modelling Investment Portfolios with Matrix Algebra

Investment portfolios are a collection of investments.  These investments can be anything including real estate, merchandise inventory, or a collection of businesses in a multinational corporation. However, the term is most commonly used to describe an investment in stocks and bonds in financial markets. Whatever the context may be, a portfolio is a collection of … More Programming in R: Modelling Investment Portfolios with Matrix Algebra

Stated Intentions and Demographics on New Product Purchase Forecasting

Using survey data from intentions to purchase personal computers (PC) and demographic variables Hsiao, Sun and Morwitz (2002) find that: A remarkably stable relationship between intentions and purchase over time. True intentions are not represented by stated intentions.  A better representation of the true intentions should be a weighted average of stated intentions. Family, education, … More Stated Intentions and Demographics on New Product Purchase Forecasting

Election Outcomes and Economic Performance

The following links contain the dataset and the STATA program used to generate the econometric estimates found in this post. Data: Election Outcomes and Economic Peformance (1996) STATA Program: Election Outcomes and Economic Performance This blog post replicates the analysis of the relationship between economic performance and election outcomes done by Fair (1996).  The regression … More Election Outcomes and Economic Performance