Econ 399 Chapter1 - Econ 399 Introductory Econometrics...

Info icon This preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 399 Introductory Econometrics Multivariable Regressions Multivariable Inference Multivariable Statistical Adjustments Lorne Priemaza, M.A. [email protected]
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1. Nature of Econometrics 1.1 What is Econometrics? 1.2 Steps in Empirical Economic Analysis 1.3 The Structure of Economic Data 1.4 Causality and the Notion of Ceteris Paribus in Econometric Analysis *Note: All uncredited quotes are from Wooldridge’s Introductory Econometrics (2006)
Image of page 2
1.1 What is Econometrics? Definition “Econometrics is based upon the  development of statistical methods for  estimating economic relationships,  testing economic theories, and  evaluating and implementing…policy”
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1.1 What is Econometrics? Uses -What impact does the price of writable  DVD’s have on the price of movie popcorn?  (estimating relationship) -Success of a marriage is inversely related  to time spent dating. (testing theory) -Implementing a health care fee acts to  eliminate waste.  (evaluating policy) 
Image of page 4
Econometrics vs. Math. Statistics  (generally) Econometrics Deals with problematic nonexperimental data Nonexperimental Data: Observational Data, observations of agents in the real world Researcher is a passive collector of data from the real world Mathematical Statistics Deals with controlled Experimental Data Experimental Data: Data collected in a controlled environment Researcher is an active collector in a controlled, artificial environment
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1.1 What is Econometrics? Econometrics - Using a hidden camera in a supermarket,  27% of shoppers bought  Captain Chocolate’s  Chocolate Heart Attack in a Box   (CCCHAB)   with extra Chocolate marshmallows Mathematical Statistics -In a focus group of 57 people, 63% chose  CCCHAB  over the top 3 chocolate brands
Image of page 6
1.1 What is Econometrics? Note -Econometrics  can  use controlled experiments  and statistics originally devised ways to deal with  observable data -Due to monetary, scope and morality  constraints, econometricians wrestle with  nonexperimental data more often   -ie: a lab study on the mortality rate of middle  class citizens using cell phones is monetarily,  morally, and administratively unfeasible  
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1.2 Steps in Empirical Economic Analysis -Empirical analysis generally arises from two  areas: 1) Estimating a Relationship   Ie: What factors determine a hockey  player’s salary? 2) Testing a Theory Ie: Studying after 11pm is less effective  than studying before 11pm.
Image of page 8
1.2 Steps in Empirical Economic Analysis “An  Empirical Analysis  uses  data to test a theory or  estimate a relationship.” How?
Image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1.2 Steps in Empirical Economic Analysis 1) Formulate a question/hypothesis   -Does income influence driving habits?
Image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern