If you are trying to understand what the endogeneity problem in econometrics is, why it matters, and what is its basic example to understand, this post can help. Let’s start our learning. What Is the Endogeneity Problem? Consider the simple population regression model: \[y_i = \beta_0 + \beta_1 x_i + \varepsilon_i \] One of the … Read more
Data analysis is a crucial step after constructing an econometric model. We need datasets to gather evidence supporting or refuting our hypotheses. There are various types of economic data sets but we will describe the types of data sets in econometrics which are considered as a key in our practical scenarios. Let’s start our discussion. … Read more
Before delving into the detailed study of econometrics, it’s crucial to understand its basics, specifically what econometrics is. Without a foundational understanding of the discipline, gaining broader knowledge becomes challenging. Let’s initiate our discussion to know its general overview. Introduction to Econometrics Econometrics is the combination of Mathematics, Economics, and Statistics. It employs statistical methods … Read more