4Methodology of Multiple Regression Analysis
4.1 Introduction
In Chapter 3, we discussed a simple linear regression. Simple linear regression is a useful approach for predicting a response based on a single predictor variable. However, in reality, most of the cause and effect relationships studied by economists are not bivariate but multivariate. Although much of the analysis was a straightforward extension of the simple regression model, the dependent variable in the multiple regression models is hypothesised to depend on more than one explanatory variable. When evaluating the influence of a given explanatory variable on the dependent variable, we have to understand the new issues: (1) to discriminate effects ...
Get The Art and Science of Econometrics now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
