Mathematical preparation
Abstract
Section 2.1 of this chapter defines the typical notations. Section 2.2 explains the classical linear regression model with typical assumptions and discusses what may happen when these assumptions are violated. Estimation techniques such as ordinary least squares, two-stage least squares, and generalized method of moments are briefly explained. Sections 2.3 and 2.4 introduce two advanced regression models, the generalized linear model and the additive model. ...
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