Regression Models - БГЭУ

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Chapter 1Regression IntroductionRegression modelsform the core of the discipline of econometrics. Althougheconometricians routinely estimate a wide variety of statistical Models , usingmany different types of data, the vast majority of these are either regressionmodels or close relatives of them. In this chapter, we introduce the concept ofa Regression model , discuss several varieties of them, and introduce the estima-tion method that is most commonly used with Regression Models , namely,leastsquares. This estimation method is derived by using themethod of moments,which is a very general principle of estimation that has many applications most elementary type of Regression model is thesimple linear regressionmodel, which can be expressed by the following equation:yt= 1+ 2Xt+ut.( )The subscripttis used to index theobservationsof asample. The total num-ber of observations, also called thesample size, will be denoted byn.

many different types of data, the vast majority of these are either regression models or close relatives of them. In this chapter, we introduce the concept of a regression model, discuss several varieties of them, and introduce the estima-tion method that is most commonly used with regression models…

  Model, Regression, Regression model