Questions about Levitt & Syverson = quasi experiment
6 important questions on Questions about Levitt & Syverson = quasi experiment
What is the main difference between L&S and List’s design?
In the quasi experiment of L&S there is a control group (the clients) and the experimental group (the realagent selling his own house)
Compare internal validity and external validity of both papers (L&S vs List)
-External validity of L&S is higher, because the experiment of List is conducted in the lab that makes it more difficult to compare the results to the real world.
Which characteristics of positivism do you recognize in the approach of Levitt and Syverson?
-Epistomology à
oLarge sample
oDeductive
oDetached stance
oNumbers (quantitative)
oStructures
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What are the independent and the dependent variables?
-Dependent variable: days on market + selling price
Why do they researchers expect a cause and effect relationship?
-Misalignment of incentives (it is not worth his time to go to the max, so more time does not pay out for the agents)
Which covariates (a.k.a. control variables) did they include in the analysis? Which third variables are discussed? And which factors cause an interaction effect?
L&S include the control variable à basic features of housing, characteristics (rooms; fireplace) has effect on both variables (independent an dependent). Control variables are alternative explanations but there is data available
L&S discussed the following third variable à less risk aversion by the agents. L&S does not have any data on risk aversion. Third variables are alternative explanations but there is no data available
Interaction effect à influencing the strength of the relationship of the dependent and independent variables. For example internet.
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