Econometric Methods
Session 14
Outlier or Influential Observations
27-07-2017
ANY ABNORMALITY
1
Outlier and Influential Data
An observation is potentially an influential observation if it has an x or y value that
is far away from the rest of the data
(sep
PGP
Session 1
2017
Understanding Econometrics
A case of Simple Regression
05/06/2017
Understanding Econometrics
1
A flowchart illustrating the Process to Move from Statistics to Econometrics
Start
No
Formulate the problem
Choose a set of variables
Choose
Censored and Truncated Regression
Model
Issues of Sample Selection
Session 13
24.07/2017
Discrete choice model & sample Selection
1
Any number we assign to them is purely arbitrary and
for the purposes of labelling or indexing only.
cfw_car, bus, train or
Regression
with
Endogeneity
IV method/ 2SLS method
Session VI
IV estimation
22.06.2017
1
I
IV Estimator
2
N zi yi zi yi
=
N zi xi zi xi
( zi z )( yi y )
( zi z )( xi x )
1= y 2 x
IV estimation
22.06.2017
2
I
Test for Endogeneity(Hausman Test)
IV est
Econometric Methods
Session 8
Problem of Inefficiency Due to
Varying Variances
7/3/2017
Issues in Regresseion Analysis
1
Figure : Heteroskedastic Errors
7/3/2017
Issues in Regresseion Analysis
2
What is varying variance of the error
term (Heteroskedastici
Econometric Methods
Session 9 & 10
Dealing with Time series Data
7/6/2017 & 7/8/2017
Dealing with Time series data
1
ASSUMPTIONS FOR CLRM
1.
The values of the disturbance term have independent
distributions
ut is distributed independently of ut' for t' t
Econometric Methods
Session 11
Time series Regression
7/17/2017
Time Series Regression
1
Structural Break
7/17/2017
Time Series Regression
2
Structural Break
7/17/2017
Time Series Regression
3
Structural Break and Unit Root
7/17/2017
Time Series Regressio
Discrete Regression Model
Non linear Model
Session-12
7/20/2017
LOGIT-probit
1
Discrete Regression Model
Discrete values: 0,1,2,3 or 0/1 type (Binary in nature)
the outcome, Y, being assigned a value of 1 if the event occurs
and 0 otherwise.
7/20/2017
LO
PGP
Session 2
2017
Understanding Econometrics
A case of Multiple Regression
08/06/2017
Understanding Econometrics
1
PRECISION OF THE REGRESSION COEFFICIENTS
2
b0
X2
2 1
u
2
n
X i X
b21
u2
X
X
2
i
n2
u2
n
E M SD(e)
n
Hence, u2
e
i 1
2
i
n2
. reg
PGP
Session 3
2017
Understanding Econometrics
A case of Multiple Regression
6/12/2017
More on regression
1
Testing H0 : 1 = 1
Where 1 is a constant chosen by the
investigator , against the two sided alternative
H1 : 1 1
The alternative test statistic :
6/
PGP
Session 4
2017
Understanding Econometrics
A measure of causation
6/15/2017
Causality
1
Properties of the Sample OLS
Regression
(you can check these on your spreadsheet)
(1) The least-squares regression residuals sum to
zero
(2) The actual and predicte
PGP
Session 5
2017
Understanding Econometrics
IV estimation due to Endogeneity
6/19/2017
endogeneity
1
Omitted Variable: can we remove
that? Panel Data
Cit 0i 1Yit it
Through th is fixed effect in panel data we can control for any
Time invariant intangibl
Managerial Economics
EPGP03 Kochi Center IIMK
Project Report on
Economic Analysis on Utilization of Solar Energy in Agriculture
Submitted on
:
October 03, 2015
Group Members
:
Ben Krishna M. U
Honey Jijo
Jayasuryan V C
Krishna Chandra Menon
Muthukumar P
N
Consumer Choice Under Risk
EC101 Lecture 7
Uncertainty
All face the same (rain / sunshine; economic slowdown)
Information assymetries exist (CEO vs operator)
Reaction
Passive
Active
State of nature
(rain, sun, cloudy)
(high infl, low infl, high d
Game Theory
Lectures 15 and 16
What is a Game?
Situation in which each member of a group makes at least one decision,
and cares both about his own choice and about others choices
Includes any situation in which strategy plays a role
Military planning, d
Price Discrimination
Lecture 14
Price Discrimination: Pricing to Extract
Surplus
MOTIVATION
Monopoly profit would be higher if it could
a.
charge consumers with greater consumer surplus a higher price
b.
Also sell to buyers who value the good/service mor
Consumer Choice
EC101 Lecture 3 and 4
Objective:
to understand the consumer decision-making process that generates demand
functions for goods and services
to know how changes in various prices, changes in income distribution, and changes
in the attribut
Demand and Supply
EC101 Lecture 2
Price
Market Demand Curve Buyers behaviour
The inverse
demand curve
P2
P1
Q2 Q1
Quantity
at each price, the D curve
shows the max quantity that
consumers are willing to buy
at each quantity, the D curve
shows the max pr
Costs of Production
Session 9
Fixed Costs and Variable Costs
Total cost (TC or C) = Total economic cost of production,
consisting of fixed and variable costs. = FC+VC
Fixed cost (FC)
Cost that does not vary with the
level of output and that can be
elimina
Microeconomics
EC 101 Term I 2016
Indian Institute of Management
Calcutta
EC 101 Logistics
Six sections
Three faculty members, each
teaching two sections
Prof. Anindya Sen (D & E)
Prof. Arijit Sen (A & C)
Prof. Runa Sarkar (B & F)
Microeconomics ECON
Post midterm Course Outline
Theory of the Firm
Competitive Markets; Factor Markets; Market Failure
Full Market Power - Monopoly
Pricing
Game Theory, and Oligopoly
Externalities and Public Goods
Monopolistic Competition
Assymetric Information
~ Chs
Introducing Costs
Opportunity Costs and Sunk Costs
A Simple Cost-Benefit Analysis
I have the opportunity to invest in one of two 2-year projects:
Venture
A
B
End of year
expected returns
200 after year 1,
800 after year 2
500 after year 1,
500 after year
Consumer Choice Theory
Some more Applications
A Market Demand Curve
Buyer Value
Number of
Demanders
$100
10
$200
15
$300
10
This market demand
curve has only 3
different Buyer Values
and hence is like a
stairway with 3 steps.
Price
If there are many
dem
Session 10
Putting it all together
1. What happens in the market for hamburgers if
Price of hot dogs increase
A disease develops that kills a large proportion of cattle
A new breed of cattle is developed with much faster
growth
Medical research proves
Profit Maximisation
Session 10
Equilibrium of the Firm
Objective: Maximise Profits ()
(q) = R(q) C(q)
C(q)
Cost,
Revenue,
Profit,
R(q)
What happens to if q<q*
if q>q*?
Using Algebra:
To maximise (q),
d /dq = 0
d2 /dq2 <0
Rs
MR(q) = MC(q)
qo
q*
Output, un
MICROECONOMICS
ARIJIT SEN
SUPPLEMENTARY (OPTIONAL) READINGS FOR TOPIC 1
Why the World Isn't Flat
PANKAJ GHEMAWAT | MARCH 1, 2007 | FOREIGN POLICY
During a recent TV interview, the first question I was asked - quite earnestly - was why I
still thought the
MICROECONOMICS: Topic 2
Demand and Supply Analysis
30-6-2015
Topic 2: Demand Supply Analysis
An economy is a complex system with many markets consumer
goods markets, producer goods markets, labour markets, financial
a ets,
markets, etc.
How do we begin to
TOPIC 1 : DECISION-MAKING IN A MARKET ECONOMY
I. THE AMBIT
OF
MICROECONOMICS
The discipline of Economics focuses primarily on three over-arching issues:
1. How do/should people make choices/decisions to improve their economic well-being?
2. How do individ
TOPIC 2 : DEMAND - SUPPLY ANALYSIS
I. DEMAND, SUPPLY & MARKET INTERACTIONS
An economy is a complex system with many markets consumer goods markets, producer
goods markets, labour markets, financial markets, etc. How do we begin to analyze
individual marke
MICROECONOMICS
ARIJIT SEN
SUPPLEMENTARY (OPTIONAL) READINGS FOR TOPIC 2
Current and future prices of essential commodities like oil and food-grains in the world market are
of concern to everybody. The following articles discuss the demand-supply as well a