Theory of Econometrics: An Introductory Exposition of Econometric Methods

a₁ analysis of variance apply OLS appropriate transformation assume assumption asymptotic b₁ b₂ bias Chapter collinearity compute consumption function correlation coefficient degrees of freedom dependent variable deviations distributed lag disturbance term Durbin Durbin-Watson test econometric methods econometricians economic theory error term errors of measurement example explanatory variables factors figure first-order autoregressive scheme forecast formula H₁ heteroscedasticity homoscedastic income intercorrelation lagged values level of significance linear mean mis-specification multicollinearity null hypothesis obtain original model parameter estimates partial correlation coefficient pattern period positively autocorrelated priori procedure random term random variable regression analysis regression line regressors reject the null residuals sample observations serial correlation standard errors statistically significant successive values sum of squared tests of significance true parameter u₁ unbiased estimator underestimation v₁ v₂ var(b variation X₁ X₂ Y₁ zero Σεξ ΣΥ Σχ