ee oufia/a4 yeders 4 Syllabus Module > 1 Inteoductien to Leonometeis anal Reytession Analysts | Bask concep and mefhodology o€ Econamnet tO ~ Single Equation Regee soo mmode/ - the peoble ot Esmaten — The method of oxdinaky Least Sguares — The Gna uss -Markov Theorem — arsumphiony ~ propeehes of ols Estirrato4? — N oma lity Assump her -Hypothe It besHog Funchonal forms of Regt ess fon — Maximum Livel’hood Method Module - 2 [mustzple Regee 53100 § Estimation) Maltple Legee sions eshmation | tes ting fit sig nificance of Coeererens - ANoVA-F-&4 The coetichent of pefeeminatern and adjusted R* Mocule- 3 IM ol el Diag rostics] Th coblems of non-linear} Icollineans! e p ed 0 in Hy multicolineasiyON 4)\2}24¢| © 9) Het exorce ar VY and Autocorsel afi on petectten, and Remedial prtasuces . % er | problem - Ercoes jo measukement. Pot, Module - oa - pelnstens Equations Mea} odds) ¢ of rpal taneous eguahent- Shmulf Wh, in OLS ~ pleat Pf YyiOg aod estonahg ystems wlth moke thon 2515 Nahse bias & elt a SEM? 2sLs, Ss 5 [regetsshr with Dumn Vaeiablss Module - pumm fadep endent vatiables - UFEF~ sing pn£ercepl - DUTINY variable teap~ seasonal Analysis ctural and Inpexactive efpect® 5 Near beg LEISIED - steu | piecewise ti ond ifs applications stab? lity -thow Test os Dummy pependlent vasiable - Log? é peosrl, Tobsl models:ect 2 nee. econometeks means Evononic p easuUremenkd mathematics and statistees 1 known (ais Bconomet é7cs. , © feem exonomejeics twas coined by Rag nap faisch LnBlON 0¢ Economet dics Babs cy eo Btonerne4 A? cs meg be defgrned as ce ate applied fo she analysis ” mic phenomena: fo Ragaak FRISCH | telafienship b/o25 i2)2! economi vakia b/es a» of tah StTes « ieee Econorae/ thes ulth ard of pp | ice, of Sep Math Peal Econamfc latheraay# Ca. Theory | Econormfet pee amete/c.: jk. stoped Phe tg fves veebo explanation é gelapunship With Aelatonship , Also stapes ty ts stotement Ree POEMOT c af symbols Sym bos. IE expecss varioll 1 allo expecsr | je epics Adatianshlp jin an @xack way var lous piste SPIP (179 an exac wa VaAlods Lela}, FPP fro an exe ee & a el attonsbip i t ase nen- stock 2 JE also states Phe non-stochat He yolM i Phovidex numerical valud oe” €conemie IE fake oe acount the fhandem diysys- dances 1E also peeve nume Lead value of¢ eeonem se Phenerre 1H: eo 7é makes emp Vebipicafian ¢ etonumse | kelah enshi psOno meferCs exe ate & Steps They are t— “statement of Economic ey, bog pothesis : ig! hecor lrg to Keynes Psycholagica l Law of consumption “hen income jncee am — Gonsumphon also increases sess than Propethonate Incetease fn income. e cigicatran °? the math emaheal mace | a’ 3s autenomeus consumphen Carico) aon of Econorntkitptode/ elomometeie model we use an Pte of Lanedorm variable of se phLee stages ake specigrca) is S1agesTeH09 of hypothests Theze 95 nur hyp ofh e515 GP) and alleino ag & hypothesis UH,): Ber. 2) >< H Res or BO A, B socked pen H, lil be accepkd Ee e et = Yo “means gees Vatlahen/? : ° 2 be due Fo yarlahon 1P -Y meens no e ri ace | Pes loo, varlaHen (7 x mere *s variation fn Y- 4e cashr tel cfoA makers for predicts 0P Bee c the Vo cte/ got UES pu Lpeses - BB 5 f ae helps poMey roakeks 0k ‘ ti porctes [ficient ly, n means the nature of @ the \obreevahle puonpher There fo ke they can be easily computed. ad ake point) eyece ey (means JE giver an exact ee lie a pair ear pg given the somple cach esprmatok wif re only a - single value of the 2elevenl ” pokamaeter, point estimafok meany JE. only explains } Hi cular point of eshmation geeocah : a sample data. ‘the oLS estimafols gee objained can be e4rtly obtained. The kegeesien us obtained has the folowing ee. 4 A 419 /', moe? Th £009 the o%9/n 0£ Hhtodgy e average ef x. ond y12 Japs _— ahbhe The mean value of the etHmasecl y -, epual fo the meen value of fhe acteal y Fok NY ook A , SI alee re \ ¥ A zi res 9 ay Sear aie = + 3. (;-* ) Summing both SFdes of ths least eguali+ over Ge sample values Oct eae 7 Fhe yh by fhe sample size (@) gives s ? N = Mee. Y © The pase Qi vec i.3 of the eesl/dueg/ yx Ab, la eg re cai 32 iy : A Q@> The 4esiduals UU; aeze utth the predicted ye (2) The 2es7huals as) fh 4 Un cokte late f i oe arse vacoseelatendR , An A “ eux; =o—" classPeal Lineak kegs ession Mode : (LRM) mptren — 4. > Home%¢ adast ety ay ficik Vazlance Of Me, x ie \ a t a word home meant same. ¢ seadaxteity’ * , pt spread . fo Home xaclas fic ity means ; y \ Jpg: . ed oO . Ms 0 eke IF 1e3s aio pale od /exs “SS © 4 pA, thea jt 03 ee Good average Rote c * Se ASAR YA )n|2 i 5)| Assumption -5 > No aufoceg eclation a. the dis Jaehances: oNo autocogeelator means the ekeon Peon, Shoulol not be cortelated means Ne gelaftonsh fp bfuy two tttok. fesms- 6) Assumption -6 —S the is no petfect Mult; - Colline le *No Mateo llin 202/Fy me4ns That the (ndepen dent variable shout het ¢ loreelafed. ae The Aege e550 Pyode | Sfould be (oree ctl y specified | » This 1 7 2 eee f°? we? thee Fhe ce Shouvid be no SpecitraHen harry ee medel : Ok bea & in the ty Ptampren =o The numsee of obresvc wb! of Wanipie 5: MO be Geeatts than a ,, thE number of prtamtbers exhmated. en mens thene- spunitt, taken foe analy s% 4) Msemphen ~9 —s The nutere ey xX votradks Shoutel pot be out liets Git natuce of x vaciables? vaciance four: 5)ye-ant mete should be a commeD chosacley es behween the v0.0 bes . Gauss - Matkov theorem (B.vE ) urs -Makbove Theowem jusfipiex the use the eL5 method xorpek than using & “Al of camps ting esprrnfors: ren the asumphons ¥ the cla ss ca] Line ak 570 model the Jeast SyLake ejash of “Unbalrecf ocak eshmatels, esmeaels -e minimum vetlan ce that (x tay ak JE (get Lineat Unbaixed Estimak 2) % lineak thet iy a "neat function yo a Lender? varias le guch ax the Mepelent yatable y (ane 4 Le 07) ata TIPRERG y NafpesV VER OD € 4 a xp ected ee fae ar) Grepual mirfmum variance io the class 1 such linear unbaised estimafoe e a bai ved extimatot with the least fF Kamen as an efficient/exrmatok.\¢hiafa | wf No malty Assumption the no tmality simp Hon is ASSO clef with the @ttoe #e2ng A4:) eed the \ fer, 4 Us) is hoareally Aistwboted ype,, 1s J neither PesPHVe ef 7 oy ative skewnes, Me potower a noemal disteibu Her | with mean zeto gnd vesiaNce ,r aS E (4s =O) Vaigmeete AL = ; ' Background, ; —t- - Up 1b: 9 of - fe . 2 ia the The badbs)} isttrbeh'on e whole) the pecba bling ai aa the a uf Arbend on He assUmppon male ghou a Wynn 4 Sangs§ the probability Aste bao of ue 2) OLS methool Ares not preke ang axsum pho about Pied abi stra Ais421b uh of 4, The Puapos ¢ y Beer ng PRA ¢ tom JRE The Gaus- Markov BRE Aer wien shoei? '3) vith toe back geandl MM Aururces U- is Vis ez meky BUA ef bite ol,Normal PHY assum pion of Ae ge classical nogmal Jineak 44/4 esston Makd assumes thet each nw js ols barb tee E noamally wlth mean = E(:) ~ Beet ef 4;—- & tay es e (47) yo a» (4, 4;) 2 E {L (a; -¢ (a)] fy - EGS} -— can (47 Hy) AC) i ral ee : iPS . ae above ] pie compact ly orate ol cee yea N(o, ~) Ge is coarmalld di rfarbute! iv when the ay fr te4o and yatience is. can be ss Roe 7s © warlad ly are nop Sane 7 1 spill beye} 3) Aas we diseusted €ae//t4s BP, >» Ineak punctrons oF A. , hes fore I g ape rogma lly abstarbutet 50 age Band 4 whieh makes oul task of bypotb ess Fe ia Moo y strat got pauatel: ‘ 8) The’ ovmal diprida tind Ba comprises, simple albtaiburien nvelving oaly feo jo camate rs (meen and vaerance) A very well known and th theore Hie a fer have been ec der vive | y Ee atical aga?” Beside ¥ ms The nana ity Yr sunping ef ele, If net only Mps Bi -< pecbebiley BX ‘f ae. pe a i mples f and F step S dye fpoand Ffpeobabl Wed disttthutiens so thet the & Pfs C Zeyts> that axe based 92 rhe a ays um ptren fe Y: Aytethbuked can sl 4¢ apf fot the ehsot fen /F A red ols es mater underthe AS SUTYY pt 721) « Qee anbalsed ; POY oe + s Une & Pepin) vasiagce , cop t/? hi ‘ Phrs (PLANS phat Lage He alee rininer \ ey nave. Consistency | th af 7s as fhe mz e) incl et axey tok fined ty CIM 4 fo £5 CCE Ae a fo thervk € Pepelahren values . ( being ae (neat funn ict) a y malty. liste bute d arth A i £ Ce) a oe a lineas FUNchron of 4 ue g disttlbused with meant Be - B a of wll Acip «ste )a } lispelbute kd indcpe minimure a efance io the eat ke ‘ead etimedbt abether Jineae ae netATE Ceo aa rea oa a oF ong our 0:03, lee | age | oop {oer | 608i 4 [a0 | -o9 5 | ont TOT as | aca Soyer] — ores | ons SaIP aT oi ONG 0-02. + | -o7F8 | oe jaest a | ie Veet Sea e226[qaa | oa | Os at 6% — (042% 12) = 764-44 =a eee tet mays | eS he ae aa | | Ww Vr e (éxplaind sum Copal 5und esi dual sum et ey og Squate) of spuate ) ae a fs pepe lap OE eee | — | Rae, 38 (a) 4 tee a se (B)+I a7 a