Hello, folks its time to cover some important econometrics tests you can do in R.The Akaike information criterion is a measure of the relative goodness of fit of a statistical model. If you have 10 models and order them by AIC, the...

Hello, folks its time to cover some important econometrics tests you can do in R.The Akaike information criterion is a measure of the relative goodness of fit of a statistical model. If you have 10 models and order them by AIC, the...

In post 6 we introduced some econometrics code that will help those working with time-series to gain asymptoticly efficient results. In this post we look at the different commands and libraries necessary for testing our assumptions and such. Testing our Assumptions and Meeting the Gauss-Markov TheoremIn this section we will seek to test and verify the assumptions of the simple linear...

IT is now appropriate to lay out our two regression models in full for empirical estimation over our two separate time periods. The first estimation is from 4/1/71 to 7/1/97 and the second is from 4/1/01 to 4/1/11. The methodology employed in the estimation of these two models is a procedure using Generalized Least Squares with a Cochrane-Orcutt, style iterated...

Here at the dancing economist, we wish to educate our followers on the finer points of economics and this includes econometrics and using R. R as mentioned previously is a free statistical software that enables regular people like us to do high end eco...

Today we wish to see how our model would have faired forecasting the past 20 values of GDP. Why? Well ask yourself this: How can you know where your going, if you don't know where you've been? Once you understand please proceed on with the following post.First recall the trend portion that we have already accounted for:> t=(1:258)> t2=t^2> trendy= 892.656210 +...

e-mails with the latest R posts.

(You will not see this message again.)