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Alex Tabarrok has just had a co-authored paper published that uses a simulation-based approach (using simulated “placebo laws”) to help test whether the effects of certain types of dummy (binary) variables in a time-series are statistically significant. It seems like a fairly interesting approach, which I’ll have to bear in mind next time I do any time-series stuff (most of my data tends to be cross-sectional, however).
And, the substantive topic of Alex’s paper will no doubt be of interest to those who want to fight over John Lott’s More Guns, Less Crime.
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