Econometrics Notes from

Econometrics Notes from - . A model must be constructed to...

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Econometrics Notes from “A Concise Introduction to Econometrics I. Introduction a. I will answer practical questions by inserting data into an economic model i. b. The goal is to translate practical questions into an econometric model c. A key activity of econometricians involves finding the right model for the provided data i. Parameter estimation; parameters are found by inserting data into model ii. Answers involve a level of ‘confidence’ rather than yes/no d. Implementing model outcomes: constructing forecasts e. Summary: Economic insights and mathematical language is used to construct the econometric model . Statistical techniques are used to analyze its properties . f. There is no given model at the outset of a problem
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Unformatted text preview: . A model must be constructed to interpret the data. i. Specify the model ii. Evaluate the model iii. Implement the model II. Basic Concepts and Tools i. Distribution the spread of data ii. Linear Regression 1. Some model Y i =B o +B 1 x i +U e a. Y is the dependent variable, since we need to plug in x (the given data) to reach a conclusion b. B i is a constant that addresses some aspect of the model and usually B i s need to be estimated c. U e is the residual, some aspect of Y that the model cannot account for through calculating x i iii. After gathering sample data, the purpose is to estimate the parameters and assign a confidence interval for the estimates....
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Econometrics Notes from - . A model must be constructed to...

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