Introduction to Econometrics
Econometrics
Methodology of Econometrics
Example
2. Specification of the Mathematical Model of Consumption
Keynesian consumption function
3. Specification of the Econometric Model of Consumption
Econometric model of the Keynesian consumption function
4. Obtaining Data
5. Estimation of the Econometric Model
6. Verification of the model and hypothesis testing
Economic verification
Statistical verification
R2: A measure of goodness of fit of the estimated regression
Econometric verification
7. Forecasting or prediction
Dummy variables
Example: PUBLIC SCHOOL TEACHERS’ SALARIES BY GEOGRAPHICAL REGION