extreme outlying circumstances. Question C Zero Conditional Mean Assumption is “a key assumption used in multiple regression analysis that states that‚ given any values of the explanatory variables‚ the expected value of the error equals zero” (Wooldridge‚ … ) . Within the context of the equation listed above‚ the error term[pic]has no relation with any of the explanatory variables “log(lotsize)” and “log(sqrft)‚ in other words [pic]is mean independent of “log(lotsize)” and “log(sqrft). This also
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Mostly Harmless Econometrics: An Empiricist’ Companion s Joshua D. Angrist Massachusetts Institute of Technology Jörn-Ste¤en Pischke The London School of Economics March 2008 ii Contents Preface Acknowledgments Organization of this Book xi xiii xv I Introduction 1 3 9 10 12 16 1 Questions about Questions 2 The Experimental Ideal 2.1 2.2 2.3 The Selection Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Random Assignment Solves the Selection
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ECONOMETRICS Bruce E. Hansen c 2000‚ 20101 University of Wisconsin www.ssc.wisc.edu/~bhansen This Revision: January 10‚ 2010 Comments Welcome 1 This manuscript may be printed and reproduced for individual or instructional use‚ but may not be printed for commercial purposes. Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi 1 Introduction 1.1 What is Econometrics? . . . . . . . . . . . . 1.2 The Probability
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A brief overview of the classical linear regression model What is a regression model? Regression versus correlation Simple regression Some further terminology Simple linear regression in EViews -- estimation of an optimal hedge ratio The assumptions underlying the classical linear regression model Properties of the OLS estimator Precision and standard errors An introduction to statistical inference 27 27 28 28 37 2.6 2.7 2.8 2.9 v 40 43 44 46 51 vi Contents
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Models Introduction The Simple Regression Model The Multiple Linear Regression Models Violations of the Assumptions of CLRMs Definition • Econometrics is the application of statistical‚ and mathematical techniques to the analysis of economic data with a purpose of verifying or refuting economic theories. Theory Mathematical Model Econometric Model As income increases‚ consumption also increases‚ but not as much as income. yi = f ( xi ) = β0 + β1xi y i = f ( x i ) = β0 + β1x i +
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ECONOMETRIC ANALYSIS. INDEX: - Introduction..................................................................................3 -Background....................................................................................8 -Empirical Analysis.........................................................................9 -Conclusion.....................................................................................31 -Bibliography.............................................................
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INTRODUCTORY ECONOMETRICS Lectures 1 & 2 Statistics for Econometrics POPULATION AND SAMPLE Population – the group of ALL people or objects that are under study Sample – a sub-set of the population Parameter – a numerical characteristic of a population 1. Population & Sample Means 2. Expected Values 3. Population & Sample Variances 4. Population & Sample Covariances 5. Population & Sample Correlation Coefficients 6. Estimators Statistic – a numerical characteristic of a sample
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University of Hong Kong Introductory Econometrics (ECON0701)‚ Fall 2013 22 November 2013 Further Issues in Using OLS with Time Series Data • Last time‚ we discussed the assumptions necessary for OLS parameter estimates to be consistent in a time series context. • We also compared these assumptions with the assumptions necessary for OLS to be unbiased. • In general‚ the conditions are more restrictive for OLS to be unbiased than for OLS to be consistent‚ so in a time series context‚ it
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ECONOMETRICS EXERCISE 3 TRAN THI ANH NGUYET 28 March‚ 2013 1. The data set CEOSAL2.DTA contains information on 177 CEOs. In this sample‚ the average annual salary is $865‚864‚400 with the smallest and largest being $100‚000 and $5‚299‚000‚000‚ respectively. Another most interesting variable is sales with the average being $3‚5329‚463‚000‚ and its the smallest and largest being $29‚000 and $51‚300‚000. Using the data set‚ the following OLS regression is obtained: (1) . ˆ lnsalary = 4.58 + 0
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account data from set countries in year 2007‚ the year that indicates the entrance period of 2008 world economic crisis. The objective is to evaluate the impact of these independent variables on the total private domestic consumption through the econometrics tools for these set countries‚ which have been randomly chosen in function of the world geography repartition. In addition‚ we want to describe the economic relationship between those variables. For example according to Keynesian model‚ aggregate
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