Why do we say that cross-sectional regressions have unknown predictive power outside the specific sample and time period used to generate the regression?
Predictive power means moving along the time axis.
Cross-sectional data are, be definition, orthogonal to the time axis.
1 Like
basically, cross-sectional is about looking at a certain performance at that particular moment in the time whereas times series is more about how a variable moves through time.
Yup.
Magician always doing his magic. Thanks
What brought you to call yourself Magician?
Um . . . Iām a magician.
Mostly close-up, sleight-of-hand ā cards, coins, pens and pencils, and so on ā and some parlor (stage) magic.