Optimizing Regression Models in Econometrics

Jan 01, 2025

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Dive into the world of econometrics with a focus on optimizing regression models for enhanced accuracy and efficiency. Learn how to minimize errors and maximize the predictive power of your analyses using advanced techniques.

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econometrics
regression models
optimization
error minimization
predictive analysis

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Optimizing Regression Models in Econometrics

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OLS in The Linear Model with Two VariablesExample: Consumption Function Applied Econometrics Walter Sosa-Escudero

"positive“ error "negative“ error
Least squares: choose the line that makes the sum of squared errors as small as possible Optimal: q= 2813.3-1577.58 p q=1800-700 p Not optimal!

Model Checking

Model Checking. Using residuals to check the validity of the linear regression model assumptions. The simple linear regression model. The mean of the responses, E(Y i ), is a l inear function of the x i . The errors, ε i , and hence the responses Y i , are i ndependent .

715 views • 47 slides

Multiple Linear Regression

Multiple Linear Regression. Multiple Regression Model A regression model that contains more than one regressor variable. Multiple Linear Regression Model A multiple regression model that is a linear function of the unknown parameters b 0 , b 1 , b 2 , and so on. Examples: Nonlinear:.

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Slides for Part III- C

Slides for Part III- C. Theories of consumption. Outline The naïve model Consumption function controversies The “permanent” income hypothesis The life-cycle hypothesis The functional income hypothesis Poterba on the “wealth effect” Brown on consumer credit. The naïve consumption function.

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線性規劃模式 Linear Programming Models

2. ??????(Linear Programming model)????????????(a set of linear constraints)??,?????(maximize)????(minimize)?????????(objective function) ???????????????:?????? (A set of decision variables)?????????(An objective function)?????????? (A set of constraints). ?????? Introduction to Linear Progr

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The Linear Parent Function

The Linear Parent Function. y=x. The Linear Parent Function. What is a linear parent function ? The linear parent function is the most basic form of a linear function. y=x m=1 b=0 What are the characteristics of the linear parent function? The rate of change is 1 The y-intercept is 0

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By Dr. Olga Korosteleva

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What is a model

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Linear Functions

Linear Functions . Chapter1, Section3. Linear Functions. A linear function is a function that can be written in the form where a and b are constants. Notice that the exponent on the variable is a 1, hence first degree (linear).

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Transformations

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Chapter 8: Linear Regression

Chapter 8: Linear Regression. A.P. Statistics. Linear Model. Making a scatterplot allows you to describe the relationship between the two quantitative variables.

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Generalized Linear Model

Generalized Linear Model. Lucjan Janowski. Faculty of Electrical Engineering, Automatics, Computer Science and Electronics Department of Telecommunications. Agenda. What is AGH doing? A dog problem A solution – variable types How can we model ordinal variables Conclusions Rasch model ?.

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CHAPTER

5. x. ECONOMETRICS. x. CHAPTER. x. x. x. Functional Forms and Regression Models. The X and Y variables do not have to be linear. (The model must be linear in parameters.). . Y i = B 1 + B 2 ln(X i 2 ) + u i. This is okay, even though it is not linear in the

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Non-Linear and Smooth Regression

Non-Linear and Smooth Regression Non-linear parametric models: There is a known functional form y=  x,  derived from known theory or from previous experience that approximately explains the relationship among the variables. One reasonable model for such relationships is:

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SVM for Regression

SVM for Regression. DMML Lab 04/20/07. SVM Recall. Two-class classification problem using linear model:. In linear regression, we minimize the error function:. Regularized Error Function. Replace the quadratic error function by Є -insensitive error function :.

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LINEAR CONTROL SYSTEMS

LINEAR CONTROL SYSTEMS. Ali Karimpour Assistant Professor Ferdowsi University of Mashhad. Lecture 3. Different representations of control systems. Topics to be covered include : High Order Differential Equation. (HODE model) State Space model. (SS model) Transfer Function. (TF model)

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MARKAL PRESENTATION

MARKAL PRESENTATION. P.R. Shukla. MARK et AL location Model. Multi-period linear programming formulation Decision variables like, Investment in technology capacities & their utilization Energy consumption Emissions Electricity generation in different time periods.

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Example of 4 sector model

Example of 4 sector model. Let’s say we start with a linear model with a consumption function (or “schedule”): C = 100 + 0.75(Y – T) Let’s use a 4 sector model of AE with: I = 80 G = 60 T = 40 NX = 30. Firstly graph the consumption function.

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Appendix 4.A A Formal Model of Consumption and Saving

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Inference in the General Normal Linear Model

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LINEAR FUNCTION

LINEAR FUNCTION. L eturer : TRAN THI TO NHU. NATURAL SCIENCE DEPATERMENT. DEFINETION. LINEAR FUNCTION. A linear function is a function whose value changes at a constant rate with respest to its independent variable.

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