Heteroscedasticity in Econometrics: Meaning, Causes, Tests, and Remedies Explained One of the core assumptions of the Classical Linear Regression Model (CLRM) is that the error term has constant variance across
Methodology of Econometrics: 8 Steps Explained with an Example Every empirical study in economics, whether it involves estimating inflation dynamics or testing the consumption behaviour of households in a particular
Functional Forms of Regression Models The Semi-Log Model in Econometrics In the previous article, we examined the Double-Log Model, where both the dependent and independent variables are expressed in logarithmic
Various Functional Forms of Regression Models Double-Log Model Explained with Examples Introduction Regression analysis is one of the most powerful tools in econometrics, but a model is only as good
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
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:
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
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
Simple Linear Regression Model Simple Linear Regression Model is used to estimate the relationship between one dependent and one independent variable. It is also called bivariate or two variable regression
In the previous post we explained the concept of regression analysis in detail along with its meaning, uses and objectives. Moreover, we also discussed how regression analysis differs from correlation
In the previous lecture we discuss the types and nature of economic data used in any empirical economic analysis. To read click on Types of Economic Data. We also discuss the
Types of Economic Data Data is central to any empirical analysis. An empirical analysis uses data to test a hypothesis or theory or to estimate a relationship. The first step
Introduction Welcome to the fascinating world of econometrics! Studying econometrics bridges the gap between being a student of economics and becoming a practicing economist. It equips you with essential tools
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