3Introduction• Let’s take a moment and focus………• What is this all about??FINDING AND EXPLORINGCAUSALRELATIONSHIPS BETWEEN ECONOMIC VARIABLES USING ECONOMETRIC ANALYSIS!!
4Introduction• Here are some questions to illustrate what we are after?– Does another year of education CAUSE an increase in earnings?– Does hiring more teachers per student CAUSE an increase in student test scores?– Does training unemployed workers CAUSE them to have higher post-unemployment earnings?• Let’s provide a more formal description…
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