THE ALGORITHMIC WEDGE · Companion Econometric Appendix · 2026-05-20
DatingRev = global dating app industry revenue ($B), Business of Apps / Statista. Verified 2015–2024 (±5%); estimated 2010–2014 (±30%). Pre-2015 points shown with hollow markers throughout.
Pairwise Pearson correlations in levels (Panel A) and first differences (Panel B). * p<0.10, ** p<0.05 (t-distribution, df=N-2).
Y = α + β·DatingRev + ε, T=15. HC1 = HC0 × n/(n-2) where HC0 = Σ(xi-x̄)²ei² / [Σ(xi-x̄)²]². Scatter plots show 95% confidence band around OLS line. Hollow points = pre-2015 estimated data. 2012 annotated.
ΔY = α + β·ΔDatingRev + ε, T=14. HC1 corrected. 2020 COVID point flagged with triangle marker. 95% CI band shown.
Y_{t} = α + β·DatingRev_{t-k} + ε, k=0,1,2,3. Lagged associations are more consistent with causal mechanisms than contemporaneous correlations.
F-test: does past DatingRev predict Y beyond past Y? Effective T=11 after 1 lag. Severely underpowered — results are directional signals only. F-statistic now uses HC1-consistent denominator where feasible.
lmtest::grangertest().Bug fixed: ADF τ-statistic no longer compared to Student-t distribution (which is incorrect). Now compared to MacKinnon (1996) finite-sample critical values: CV(T) = β∞ + β₁/T + β₂/T² where T = observations in the ADF regression. No p-value is reported — only threshold classification.
Bug fixed: ols2() now computes full HC1 sandwich SEs via: V_HC1 = (n/(n-2)) × (X'X)⁻¹ × [Σei²xixi'] × (X'X)⁻¹. §7 now reports t-statistics and p-values for all models. Multicollinearity warning: r(DatingRev, Smartphones) ≈ 0.96 — coefficient split in Model B is unstable.
ρ(DatingRev, Y | Smartphones): the residual correlation between dating app revenue and outcomes after removing the general digitisation component. Primary test of dating-specificity.
N=9 countries, 2023. Descriptive context only — N too small for reliable inference. Hudson & Moscoso-Boedo (2026) event study replication: SSRN 6676839, University of Cincinnati, April 2026.
2020–2022 are structurally anomalous: STI surveillance disrupted, marriage rates collapsed (court closures), dating-app revenue had atypical patterns (COVID boom then correction). If the key result (ΔDatingRev→ΔSyphilis) is driven by these years, it may not be a secular signal. This section re-estimates all first-difference specifications excluding 2020, 2021, and 2022. T_eff = 11 (2011–2019 + 2023–2024).
If ΔDatingRev is genuinely associated with STI transmission through the proposed mechanism (expanded sexual networks), it should NOT be associated with outcomes that have no theoretical connection to dating markets. We test three placebo outcomes: WTI crude oil price (EIA), US new auto sales (Ward's/FRED), and US full-service restaurant revenue index (Census/BEA). If these show similar significance to the STI results, the model is producing spurious associations, not mechanism-specific signals.
Testing 8 outcomes simultaneously inflates the probability of at least one false positive. With α=0.10 and m=8 independent tests, the probability of at least one false positive by chance is 1−(0.90)⁸ ≈ 57%. We report all 8 first-difference p-values with Bonferroni and Benjamini-Hochberg (1995) corrections. This is the most honest section in the appendix.
Actual Google Trends "Tinder" export by US state (2012–2023) × CDC P&S Syphilis Surveillance Reports (2008–2023). N=51 states × 550 FD observations. Primary regressor: GT Tinder index (0–100 relative). Outcome: log syphilis rate per 100k. HC1 SEs throughout.
Correct treatment variable for future work: Absolute app adoption data — Sensor Tower DMA-level downloads, Match Group MAU by geography, or a composite GT index (Tinder + Hinge + Bumble + Grindr) — would avoid the relative-index normalisation problem and enable valid cross-state FD identification.