# Questions tagged [regression]

In statistics, regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables (or 'predictors').

224 questions
Filter by
Sorted by
Tagged with
22 views

### Multicollinearity problem

I am trying to model contract outcomes, let's say for car sales and I am interested if a certain group of people is better in negotiating better deals (e.g. women). The dependent variable is price, ...
13 views

### Interpretation of possible paradoxical negative correlation between variables

I am working on an assignment which asks to do an ordinal regression with the aim to identify significant contributors of the 13 independent variables on the dependent variable, and to determine if ...
36 views

### Clustering Standard Errors for Panel Data with multiple clusters

I have a Group-Firm-Year panel data set (i.e., multiple firms make up a group). Suppose I have exogenous variation at the group level over time. In a panel regression with firm and time fixed effects ...
27 views

### Identification strategy

I am trying to find the relationship between one independent variable with two dependent ones. I was doing some reading, and I can use MANOVA to regress this. However, my original ID strategy was to ...
27 views

### At what level should I cluster my standard errors and why?

I have a yearly panel data in which each observation is a pair of monitoring stations (stations measuring water quality in rivers) one located upstream and the other downstream, each station in the ...
92 views

### Test which functional form that best explains data

Tried asking this on Math Stack Exchange. Got no answer after a week, so trying here. I had this question in an exam lately and I was not sure how to answer it. Now the exam is done, and I can't go ...
20 views

### What are the values in brackets under the estimators value representing?

Please, can you explain me what are these values in red circles representing?
15 views

### What is difference between Interrupted Time Series (ITS) and Regression Discontinuity in Time(RDiT) analysis?

Can anyone give some details on the difference between Interrupted Time Series (ITS) and Regression Discontinuity in Time(RDiT) analysis? How to choose between them? which one is more robust? Or some ...
37 views

### intuitively explain the equation of $Var(b_1)$ in OLS model

Above is the capture from the Econometrics slide from "Hill,Griths and Lim (2018) Principles of Econometrics". I have no problem the see the blue font sentence separately, it's all about the ...
28 views

### GMM Estimation with HAC Weight Matrix in R

I am currently working on my econometrics assignment regarding a seminal paper of John Taylor (1993) and really got stuck during the last days with one specific question. I am supposed to set up a GMM ...
36 views

### What is being meant by "cohort-specific fixed effect for each state of birth" in Card&Krueger(1992)? What does the following equation mean?

I am referring to this paper on school quality and returns to schooling. The econometric specification has been described by eqn (1) on page 4. The authors have taken "cohort specific fixed ...
40 views

### Regarding the starting point and assumptions of linear regression model

Here is my understanding of the linear regression model with single regressor: We suppose that the population regression function takes the form of $Y_i=\beta_0+\beta_1X_i+u_i$. Furthermore, for the ...
30 views

### Which values to assign to a quantified dummy variable

I am working on a data set from kaggle (https://www.kaggle.com/spscientist/students-performance-in-exams) about how student performance relates to some explanatory variables, such as if the school ...
60 views

### Higher interest rates and default probabilities for longer loan term

I am analyzing LendingClub data with two available loan terms: 36 and 60 months. In the course of my analysis I have spotted that both the interest rates associated with each loan and the default ...
13 views

### How to test parameter restriction in seemingly unrelated regression using STATA?

Given constrain 1: [w1]ln_p2 = [w2]ln_p1 I estimate an Ideal Demand System using surge command in STATA w1 = a1 + g11 (ln_p1) + g12 (ln_p2) + b1(real_income) w2 = a2 + g21 (ln_p1) + g22 (ln_p2) + b2(...
29 views

### Need Clarification of Terms: Innovation v.s. Disturbance

I have been reading some econometrics paper and came across terms "innovation" and "disturbance" of regression models. Can someone please explain to me what they are? I have ...
93 views

26 views

520 views

### What R-squared is a low R-squared?

I keep hearing that R-squared does not really matter in economics research and that due to the unpredictable human nature, economics research regressions tend to have low R-squared. But how much is ...