Core Values of Development Sustenance: Sustenance is the ability to meet life-sustaining basic needs like food, clothing, shelter, health, and protection. It is the minimum level required for a good life. If any of these basic needs are absent or
In the previous article, Assumptions of Classical Linear Regression Model (CLRM), we discussed the assumptions of CLRM. In this article, we discuss the variance and standard error of OLS estimators and the Gauss-Markov Theorem. It has been shown in the
In the previous post, we discussed how to estimate a sample regression model, i.e., and . by applying the OLS method on sample data, both in simple and multiple linear regression models. You can read these posts here: A Numerical
Introduction of Regression Through Origin Models So far we have studied models like Where intercept is present. An economic example of these models is the Keynes consumption function written as: Where is autonomous consumption i.e., level of consumption when income
Health, Education, and Economic Development Health and Education as Objectives of Development Education and health are basic objectives of development; they are important ends in themselves. Health is central to wellbeing, and education is essential for a satisfying and rewarding
What is Multiple Linear Regression? The linear regression model shows the linear dependence of one variable on one or more independent variables. A simple linear regression model consists of the linear dependence of one variable on only one independent variable. It is
Short Questions Cash flow refers to the movement of money into and out of a business, project, or individual account over a specific period. For example, Revenue from sales of goods or services, loan repayments, interest payments, etc. Cash inflow
What is Capital Budgeting? Capital Budgeting is the process of evaluating and selecting long-term investment projects that involve significant capital expenditures such as purchasing new machinery, expanding production facilities, or launching new products. It compares costs and benefits of projects
What is Cost Benefit Analysis (CBA)? Cost Benefit Analysis (CBA) is a process that’s used to determine the profitability of a project by estimating and comparing its costs and benefits measured in monetary terms after adjusting for the time value
In this post we will discuss measures of poverty and inequality. What is Poverty? Poverty can be defined in two ways, absolute poverty and relative poverty. In ordinary language when we ask about poverty, we often mean absolute poverty. But
Goodness of Fit So far, we have no way of measuring how well the explanatory or independent variable, X, explains the dependent variable, Y. In other words, we must know how well the OLS regression line fits the data. Are
What is Money? Money can be defined as any asset or commodity that is widely accepted for the exchange of goods and services. The word “Money” is derived from the Latin word “Moneta”. According to Mankiw: Money is the stock
LQ1 – Define project life cycle. Explain different stages of project lifecycle in detail. Project Project is an interrelated set of activities undertaken to achieve a specific objective. It is unique and temporary in nature with a defined beginning and
Theory of Consumer Demand The theory of consumer demand explains how consumers make choices about what goods and services to purchase and how much to spend, given their preferences, income, and prices. This theory helps us understand how consumers allocate
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