# 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').

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### Intercept in 2nd-stage Error Correction Model (ECM) regression — yes or no?

When doing a two-step ECM regression, do we add an intercept in the 2nd stage regression? I've seen course notes that add an intercept in the ECM, but some do not, so I'm confused if I should include ...
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### Event study by Kleven

I was reading the following paper by Henrik Kleven et al. https://www.henrikkleven.com/uploads/3/7/3/1/37310663/kleven-landais-sogaard_nber-w24219_jan2018.pdf The estimate the child penalty on wage ...
0answers
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### How to interpret fixed effects from a binary logit model in which all dependent variables are categorical? Marginal effects does not work

The study is on survey data from UK households with a lot of missing variables. I ran a logit regression to predict the probability of Y (binary variable)and estimated the corresponding marginal ...
0answers
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### Economics question related to correlation [closed]

b)Calculate the – (i)two regression co-efficients, (ii) co-efficients of correlation, and The two regression equations from the following informationN= 10, ∑X= 350, ∑Y= 310, ∑(X-35)2 = 162, ∑(Y-31)2 = ...
1answer
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### Interpretation of coefficients in a regression with a lagged dependent variable

I have estimated the following dynamic panel data model using GMM:           $\ln Y_{it}=\beta_0+\beta_1\ln Y_{it-1}+\beta_2\ln X_{it-1}+\epsilon_{it}$ where $Y$ is employment and $X$ is productivity....
1answer
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### Suggested model for dependent variable of different groups

I want to test the impact of X on Y. The dependent variable Y is being employed. Now, I want to see if the impact of X is different for those employed in agriculture (A) and non-agriculture (N) ...
1answer
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### Why we need to control for the interation of year and industry fixed effects?

Normally, we control for firm and year fixed effects, but in some case I saw people control for the firm along with yearxindustry or firm and yearxregion fixed effects. Could you please hint me why ...
1answer
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### Is exogeneity guaranteed for a lottery-generated instrumental variable?

If using $z$ as an instrument for $x$, to study the effect $x$ has on $y$ and given that $z$ was indeed generated through a lottery, is it definite that exogeneity of $z$ will hold? I have looked at ...
0answers
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2answers
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### How should I regress income inequality on economic growth?

I would like to know which variables to use to regress income inequality on economic growth. For income inequality, I am thinking of using the Gini index, but don't know what measurement exactly. For ...
0answers
61 views

### Question about using elasticities to compare difference rates but with different normalization

Lets say I am estimating a regression of a death rate per 100k people on an economic shock, so: $y = \beta_o + \beta_1 * X+ error$ where the dependent variable is the death rate, and x is the measure ...
1answer
50 views

### How to interpret fixed effects?

I want to interpret the output of a fixed effects regression and need help with interpreting the country-fixed effects. The regression is the following: ...
2answers
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### How to explain negative correlation between quantity sold and expenditure on advertisement?

I have received the following dataset from our economics Professor. It has 15 observations and 4 variables - 'qsold' (quantity sold of product X), psn (price of X), ...
1answer
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### Does random sampling cause zero conditional mean?

In the lecture notes of my development economics class, it says that " In the regression model : Yi = β0 + β1Xi + ui, if Xi is randomly assigned, then Xi is independent of ui, i.e., E(ui|Xi) = 0, ...
1answer
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### Why is it assumed that covariance equal to $0$ or independence between $y$'s in the simple linear regression model?

I have started a book of econometrics and in the first pages are stated the assumption used in the linear regression model, which are : The third one is the one I don't understand, why it has to be ...
1answer
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### Regressing (Very) Smooth Time Series

What are the possible problems/issues of regressing smooth time series with almost no fluctuation? Here is a specific example. Is there anything I have to pay attention to when interpreting ...
1answer
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### Calculating natural rate of unemployment

I have sample data on unemployment rate in a market and am looking to calculate the natural unemployment rate. The natural unemployment rate I obtained is constant over a time period, which is not a ...
0answers
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### Non Linear regression to obtain diminishing marginal effect / elasticity

I am working with some real estate data on housing units. For a given market, I have data on occupied units, rents, and control variables such as population, demographics, income levels etc. I'd like ...
0answers
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### Question on estimating elasticity and cross elasticity with log-log regression model

For a regression model: Y = B0 + B1.X + B2.X2 + U, B1 and B2 is the marginal effect on ...
0answers
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### Compute the inverse of a conditional quantile regression output

Short Clarification : This question was asked at the Cross Validated SE (Question at CV) but one highlighted in the comments, that this might be more applicable to this SE due to its economic topic. ...
0answers
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### Using Ordinal (Star Rating) variables to predict outcomes in Log lin regressions + Taking Median significant coefficients of multiple regressions

Framing the regression I am attempting to analyze the effects of several variables on clicks for Google My Business listings. Currently I'm using a Log-Lin regression model to predict the % increase ...
1answer
146 views

### Log log regression with fixed effects and cross elasticity of demand

I have a time series of units sold, and price. I'd like to calculate elasticity of demand wrt to price and a few other variables, some of them are fixed effects. ...
0answers
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### Determining a variable from empirical results obtained from regression analysis

For context, I am trying to estimate the excess supply and demand in the Commercial Real Estate market and the rental price adjustment mechanism following the change in vacancy. I found a paper titled ...