Download presentation

Presentation is loading. Please wait.

Published byAndrew Kane Modified over 3 years ago

1
Reporting Results, and choosing a functional form. Hill et al chapter 6.

2
Explained and Unexplained Variation Total Explained Unexplained

3
Decomposing the variation link to proof

4
Coefficient of determination

5
Example

6
Reporting Results

7
Choosing a functional form Model has been assumed to be linear in the parameters. Linear in parameters: parameters are not multiplied together, raised to a power etc. variables, however, can be transformed in any convenient way, as long as the resulting model satisfies assumptions SR1- SR5 of the simple linear regression model.

8
A functional form for food expenditure It is expected that food expenditure will rise at a decreasing rate with income

9
Some common functional forms

10
Empirical issues

11
An alternative functional form

12
Are the residuals normal (Jarque- Bera)

13
Appendix: proof back

Similar presentations

© 2017 SlidePlayer.com Inc.

All rights reserved.

Ads by Google