Three Types of Data notes
Three Types of Data
A.
Cross sectional data:
A.1.
B.
Time series:
B.1.
C.
You observe each member in your sample ONCE (usually
but not necessarily at the same time).
You observe each variable once per time period for a
number of
Lags and First Differences notes
Common Non-Linear Transformations, II: Lags and First Differences
A.
The first lag of Xt is simply Xt-1. The first lag of X in 1954 is
whatever X was in 1953 (assuming you had annual data).
B.
You can easily include both a
Introduction to Eviews notes
Introduction to Eviews
I.
Getting Started
A.
B.
To practice, go to the class homepage and click on the Eviews
"hw1" file, named hw1.bin.
C.
Choose the option "Save."
D.
II.
Installation instructions come with the software; not
Full Rank Condition notes
The Full Rank Condition
A.
Mathematically,
will only have a
solution if (XX) is invertible. And it will only be invertible if (XX)
has full rank. But what does this mean, and is there any intuitive
interpretation?
B.
Suppose you
Mean of b notes
Mean of b
A.
We maintain the earlier assumption that the disturbance terms
are iid N(0,s 2).
. Sub in for Y to
B.
get:
Then simply apply the expectations
operator:
.
. bis
an unbiased estimator for b (given our assumptions).
C.
In order to
Logs and Percent Changes notes
Common Non-Linear Transformations, I: Logs and Percent Changes
A.
Probably the most common transformation of variables is to
take their natural logarithm.
B.
When might you want to take logs?
C.
If it lets you estimate the p
Restricted vs Unrestricted Regression
Restricted vs. Unrestricted Regression
A.
For hypotheses involving more than 1 variable, it is much easier
to use the F-test. There are numerous equivalent versions, so
I'll just give you the easiest.
B.
First, do a v
Multiple Regression notes
Multiple Regression
A. Intuitively: More than one factor often matters in the real
world. And people frequently claim that some matter and others
don't. Is there any way to extend the bivariate regression to
shed light on this? E
Review of Linear Algebra notes
Quick Review of Linear Algebra
A. A matrix is a rectangular array of numbers; a vector is a
matrix with only 1 column (or only 1 row); a scalar is a matrix
with 1 row and 1 column.
B. Two matrices are equal iff they have the
Dummy Variables notes
Independent Dummy Variables
A.
You can use dummy variables as independent variables (on the
right-hand side of your equation).
B.
If you regress one dependent variable on a constant and a
dummy variable (say Male), the coefficient on