Resource-Based View (RBV) vs. Resource Dependence Theory (RDT)
1. Core idea (one-liner) Theory Core Founding Source Year RBV Penrose – Theory of the Growth of the Firm 1959 RBV Wernerfelt – A Resource-Based View of the Firm 1984 RBV Barney – Firm...
Category: Academic Concepts
Theory of Absolute Advantage and Theory of Comparative Advantage
Theory of Absolute Advantage Example:If Norway produces fish more efficiently than Portugal, and Portugal produces wine more efficiently than Norway, both countries gain by specializing and trading fish for wine. Theory of Comparative Advantage...
Layer 0, Layer 1, and Layer 2 in crypto/blockchain architecture
Layer 0 (Foundation Layer) Layer 1 (Base Blockchain Layer) Layer 2 (Scaling Layer) ✅ In simple terms: Feature Layer 0 Layer 1 Layer 2 Definition Foundational infrastructure for creating and connecting blockchains Base blockchain...
What are System Archetypes?
Let’s go step by step so you get a clear foundation in System Archetypes. 🔹 1. What Are System Archetypes? System archetypes are recurring patterns of behavior that show up in complex systems across...
When to use which Panel Data models?
Method Main Use Case Assumptions Handles Time-Invariant Variables Endogeneity Control When to Use Pooled OLS Treats panel data as pure cross-sectional data Assumes no unobserved heterogeneity (all units are identical aside from included variables)...
When to use Generalized Method of Moments (GMM)?
One should use Generalized Method of Moments (GMM) when: 1. Endogeneity is present GMM is commonly used to address endogeneity, especially when: 2. Model has more moment conditions than parameters GMM allows estimation even...
What is an instrumental variable?
An instrumental variable (IV) is a tool used in regression analysis to solve the problem of endogeneity — when an explanatory variable is correlated with the error term. A good instrument must satisfy two...
What is endogenity? and why it matters?
Endogeneity refers to a situation in which an explanatory variable is correlated with the error term in a regression model. This violates a key assumption of classical linear regression and leads to biased and...
Long-run equilibrium in time series cointegration
“Long-run equilibrium” in the context of cointegration means: Even though individual time series (e.g., prices, GDP, exchange rates) may drift or trend over time, a certain linear combination of them remains stable over the...
Robust Regression Techniques
Robust regression refers to methods that are less sensitive to outliers, heteroskedasticity, and violations of normality of residuals. These techniques aim to produce reliable estimates even when assumptions like homoskedasticity or normal error distribution...
