Unformatted text preview: Including Irrelevant Variables Setup Of Review Lectures Revision Lecture Topics 1 April 27 (Tuesday 15:0017:00):
Omitted Variable Bias, Including Irrelevant Variables 2 April 28 (Wednesday 15:0017:00):
Heteroscedasticity 3 May 7 (Friday 14:0016:00):
Measurement Error & Simultaneous Equations All lectures take place in E171 (New Theater) Past Exam Practice Question Introduction Omitting Relevant Variable Including Irrelevant Variables Setup Of Review Lectures Provisional Organization Of Review Lecture Each 2 hour lecture reviews topic through theory and practice:
Hour 1: Theory
Review of selected concepts
Broadly follow relevant textbook chapters Hour 2: Practice
Relevant past exam questions Two things to note:
Aim: help give you overview on selected (!) material
Assumed: Good understanding of basics (and this is vital!) Past Exam Practice Question Introduction Omitting Relevant Variable Including Irrelevant Variables Past Exam Practice Question Setup Of Review Lectures Sick Regressions: The Key Questions Common pattern in econometrics: start with basic OLS regression and then
analyze what’s wrong under a particular disease.
Deﬁnition: What’s the disease?
Consequences: What does it do to my OLS output?
Detection: How can I ﬁnd out if my regression is suffering from the
disease?
Remedy: What can I do to get rid of the disease? Introduction Omitting Relevant Variable Including Irrelevant Variables Today’s Lecture Assumptions of Model A Below are the 6 assumptions of Model A:
A.1 The model is linear in parameters and correctly speciﬁed. Past Exam Practice Question Introduction Omitting Relevant Variable Including Irrelevant Variables Past Exam Practice Question Today’s Lecture Assumptions of Model A Below are the 6 assumptions of Model A:
A.1 The model is linear in parameters and correctly speciﬁed.
A.2 There is some variation in each regressor and no exact linear relationship
between regressors in the sample. Introduction Omitting Relevant Variable Including Irrelevant Variables Past Exam Practice Question Today’s Lecture Assumptions of Model A Below are the 6 assumptions of Model A:
A.1 The model is linear in parameters and correctly speciﬁed.
A.2 There is some variation in each regressor and no exact linear relationship
between regressors in the sample.
A.3 The disturbance term has zero expectation. Introduction Omitting Relevant Variable Including Irrelevant Variables Past Exam Practice Question Today’s Lecture Assumptions of Model A Below are the 6 assumptions of Model A:
A.1 The model is linear in parameters and correctly speciﬁed.
A.2 There is some variation in each regressor and no exact linear relationship
between regressors in the sample.
A.3 The disturbance term has zero expectation.
A.4 The disturbance term is homoscedastic. Introduction Omitting Relevant Variable Including Irrelevant Variables Past Exam Practice Question Today’s Lecture Assumptions of Model A Below are the 6 assumptions of Model A:
A.1 The model is linear in parameters and correctly speciﬁed.
A.2 There is some variation in each regressor and no exact linear relationship
between regressors in the sample.
A.3 The disturbance term has zero expectation.
A.4 The disturbance term is homoscedastic.
A.5 The values of the disturbance term have independent distributions. Introduction Omitting Relevant Variable Including Irrelevant Variables Past Exam Practice Question Today’s Lecture Assumptions of Mode...
View
Full
Document
This document was uploaded on 03/12/2014 for the course ECON 202 at University of London University of London International Programmes (Distance Learning).
 Spring '13
 ChristopherDougherty
 Econometrics

Click to edit the document details