Econometrics, Regression Analysis, Statistics
Heteroskedasticity Your coefficients are fine — but your standard errors are lying to you What even is heteroskedasticity? Let’s start with an analogy. Imagine you’re trying to predict how much money people spend on food. For someone earning £1,000 a...
Econometrics, Regression Analysis, Statistics
Instrumental Variables and Two-Stage Least Squares When your data is lying to you — and how to get the truth anyway Here’s the problem with just running a regression Imagine you want to know: does more education make you earn more? Simple — just look at the...
Econometrics, Regression Analysis, Statistics
Introduction: The Workhorse of Empirical Economics Almost every empirical claim you have ever read in economics — that education raises earnings, that minimum wages do or do not cost jobs, that carbon taxes reduce emissions — rests on a regression. Usually an ordinary...
Econometrics, Macroeconomics, Microeconomics, Misc, Statistics
Welcome to the EconTutorials Content LibraryEverything published on EconTutorials — in one place, organised by subject. Whether you’re studying for AP Economics, Cambridge A-Level, IB, or undergraduate exams, use this page to find exactly what you need.🛒...
Econometrics, Multicollinearity
Imperfect multicollinearity With imperfect multicollinearity, an independent variable has a strong but not perfect linear function of one or more independent variables. This also means that there are also variables in the model that effects the independent variable....
Dummy variable, Econometrics
To understand regression analysis with dummy variables, let us take an example of using dummy variable with structural changes in an economy. For example, there was a structural change in U.S during 1981-1982, and also a severe recession in 2007 and 2008. So when we...
