Origins of Development Economics Post World War II Destruction Modern development economics emerged from countries devastated by WWII — there was an urgent need for theories and policies to rebuild
One of the assumptions of the Classical Linear Regression Model (CLRM) is that the explanatory variable X has no perfectly linear relationship. In other words, there should be no perfect
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
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
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
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:
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
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
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
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
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
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
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
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
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