This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 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 Measurement Error Simultaneous Equations Past Exam Practice Question Setup Of Review Lectures Sick Regressions: The Key Questions Common pattern in econometrics: start with basic OLS regression and then
analyse what’s wrong
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 Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Difference Between Model A and Model B Up until Chapter 8, we assumed that regressors were nonstochastic. Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Difference Between Model A and Model B Up until Chapter 8, we assumed that regressors were nonstochastic.
Hence their values were treated like constants. Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Difference Between Model A and Model B Up until Chapter 8, we assumed that regressors were nonstochastic.
Hence their values were treated like constants.
Now introduce stochastic regressors. Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Difference Between Model A and Model B Up until Chapter 8, we assumed that regressors were nonstochastic.
Hence their values were treated like constants.
Now introduce stochastic regressors.
Hence their values are treated like realizations of a random variable. Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Difference Between Model A and Model B Up until Chapter 8, we assumed that regressors were nonstochastic.
Hence their values were treated like constants.
Now introduce stochastic regressors.
Hence their values are treated like realizations of a random variable.
Model A was introduced for analytic simplicity while Model B is more
realistic. Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B:
B.1 The model is linear in parameters and correctly speciﬁed.(A.1) Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B:
B.1 The model is linear in parameters and correctly speciﬁed.(A.1)
B.2 Values of regressors are drawn randomly from ﬁxed populations. New! Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B:
B.1 The model is linear in parameters and correctly speciﬁed.(A.1)
B.2 Values of regressors are drawn rand...
View Full
Document
 Spring '13
 ChristopherDougherty
 Econometrics

Click to edit the document details