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, Regression Analysis
What is Regression Analysis? Regression analysis is a statistical technique used to examine and quantify the relationship between variables. In economics and econometrics, it allows us to move beyond describing a relationship in words and instead estimate it...
