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Random Coefficients RegressionPowerPoint Presentation

Random Coefficients Regression

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Random Coefficients Regression

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Random Coefficients Regression

RPD – Section 18.3

- Simple Linear Regression where each of n experimental units is observed at t points in time (typically)

- Possibly Multiple Linear Regression where each of n experimental units is observed at t points in time, based on regression with k parameters

- Random Sample of n = 10 large air markets (City Pairs), each observed over 5 years
- Y = ln(Average Fare * Average weekly Passengers)
- X = Year (1996/7=0, 2000/1=4) – Note: All Cities have same levels of X (not necessary for the method)