04 Population Regression Models Slides

04 Population Regression Models Slides - D. Steigerwald...

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Population Regression Models Introduction to Econometrics Lecture Douglas G. Steigerwald UC Santa Barbara August 2010 D. Steigerwald (UCSB) Population Models August 2010 1 / 3
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Population Regression Models Scalar Model Y t = β 0 + β 1 X t + U t Y t dependent variable X t regressor U t unobserved error General Model Y t = β 0 + β 1 X 1 t + β 2 X 2 t + + β K X Kt + U t Interpretation β 1 = Y t X 1 t X 2 t , ... , X Kt the impact on Y t of a small change in X 1 t holding all other regressors constant
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Unformatted text preview: D. Steigerwald (UCSB) Population Models August 2010 2 / 3 Zero Correlation: Regressor and Error Scalar Model Y t = + 1 X t + U t Because U t is unobserved, if X t and U t covary, then cannot determine is not identi&ed Exogeneity Assumption E ( X t U t ) = D. Steigerwald (UCSB) Population Models August 2010 3 / 3...
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04 Population Regression Models Slides - D. Steigerwald...

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