Lecture #1.pdf - ApEc 8212 Econometric Analysis Lecture#1 Conditional Expectations and Related Concepts I Introductory Remarks There are four main uses

Lecture #1.pdf - ApEc 8212 Econometric Analysis Lecture#1...

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1 ApEc 8212 Econometric Analysis --- Lecture #1 Conditional Expectations and Related Concepts I. Introductory Remarks There are four main uses of econometrics and statistics: 1. To measure the characteristics of interesting economic variables (for example, the degree of income inequality), and the correlations between different variables of interest (for example, the correlation in the returns to two investments). 2. To test the validity of economic theories. 3. To quantify the magnitudes (and direction) of economic relationships and parameters. 4. To forecast/predict future values of variables. Work on the 2 nd and 3 rd (and maybe the 4 th ) tasks soon leads to attempts to measure causal relationships. To avoid confusion, researchers must be very careful, and very explicit, when they analyze data. You should start simple and then go on to more complicated problems.
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3 II. Conditional Expectations in Econometrics : ] x . . ,
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  • Spring '14
  • Glewwe,PaulW
  • Probability theory, Conditional expectation, conditional expectations, E

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