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## ECONOMETRICS Chapter # 1: Introduction Domodar N. Gujarati

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## ECONOMETRICS I

Jul 30, 2014

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ECONOMETRICS I. CHAPTER 4: CLASSICAL NORMAL LINEAR REGRESSION MODEL. Textbook: Damodar N. Gujarati (2004)  Basic Econometrics , 4th edition, The McGraw-Hill Companies. 4.1 THE PROBABILITY DISTRIBUTION OF DISTURBANCES u i.

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• random variables
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## Presentation Transcript

ECONOMETRICS I CHAPTER 4: CLASSICAL NORMAL LINEAR REGRESSION MODEL • Textbook: Damodar N. Gujarati (2004) Basic Econometrics, 4th edition, The McGraw-Hill Companies

4.1 THE PROBABILITY DISTRIBUTION OF DISTURBANCES ui • The OLS estimators of and are both linear functions of ui, which is random by assumption. Therefore, the sampling or probability distributions of the OLS estimators will depend upon the assumptions made about the probability distribution of ui.

4.2 THE NORMALITY ASSUMPTION

Why the normality assumtion? • By the central limit theorem (CLT) of statistics statistics, it can be shown that if there are a large number of independent and identically distributed random variables, then, with a few exceptions, the distribution of their sum tends to a normal distribution as the number of such variables increase indefinitely. It is the CLT that provides a theoretical justification for the assumption of normality of ui .

Why the normality assumption? • A variant of the CLT states that, even if the number of variables is not very large or if these variables are not strictly independent, their sum may still be normally distributed. • With the normality assumption, the probability distributions of OLS estimators can be easily derived because one property of the normal distribution is that any linear function of normally distributed variables is itself normally distributed. OLS estimators and are linear functions of ui . Therefore, if ui are normally distributed, so are and , which makes our task of hypothesis testing very straightforward.

Why the normality assumtion? • The normal distribution is a comparatively simple distribution involving only two parameters (mean and variance); it is very well known and its theoretical properties have been extensively studied in mathematical statistics. Besides, many phenomena seem to follow the normal distribution. • Finally, if we are dealing with a small, or finite, sample size, say data of less than 100 observations, the normality assumption assumes a critical role. It not only helps us to derive the exact probability distributions of OLS estimators but also enables us to use the t, F, and χ2 statistical tests for regression models. As we will show subsequently, if the sample size is reasonably large, we may be able to relax the normality assumption.

4.3 PROPERTIES OF OLS ESTIMATORS UNDER THE NORMALITY ASSUMPTION • With the assumption that ui follow the normal distribution, the OLS estimators have the following properties:

4.3 PROPERTIES OF OLS ESTIMATORS UNDER THE NORMALITY ASSUMPTION

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## Browse Course Material

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• Prof. Esther Duflo
• Prof. Benjamin Olken

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## Learning Resource Types

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Session 1: Introduction (PDF - 1.8MB)

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Session 3: Poverty Traps: Graduation Programs (PDF)

Session 4: Behavioral Development: Introduction (PDF)

Session 5: Behavioral Development: Psychology of Poverty (PDF)

Session 6: Investing in Human Capital: Theory (PDF)

Session 7: Demand for Education (PDF - 1.7MB)

Session 8: Private and Social Returns to Education (PDF - 1.4MB)

Session 9: Supply of Education (PDF - 3.5 MB)

Session 10: Savings (PDF - 1.6MB)

Sessions 11–12: Demand for Health  (PDF - 1.0MB)

Session 13: Family (PDF - 1.0MB)

Session 14: Supply of Healthcare (PDF - 1.0MB / Gender and the Family (PDF - 1.7MB)

Session 15: Gender and the Labor Market (PDF)

Session 16: Land Markets (Part 1) (PDF)

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Session 18: Land Markets (Part 3) (PDF) / Public Finance (Part 1) (PDF)

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## INTRODUCTION TO ECONOMICS- ECONOMICS SIMPLIFIED

Subject: Economics

Age range: 14-16

Resource type: Lesson (complete)

Last updated

16 May 2024

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The presentation is lesson 1 of Economics. It is a basic introduction to Economics. For more Powerpoint Notes from this Author, Click on this Link to purchase a full set of AS Level Notes

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## 2024 Spring ECON 100A 001 LEC 001

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## View the speaker presentations from day 1 of the International Conference on Energy from Space, which took place in London on 17-19 April 2024!

Keynote 1: The UK's Energy Future Amanda Solloway MP - Parliamentary Under Secretary of State (Minister for Affordability and Skills), Department for Energy Security and Net Zero

Video recording

Keynote 2  Dr Josef Aschbacher - Director-General, ESA

Keynote 3 Dr Paul Bate - CEO, UK Space Agency

Keynote 4: UK Space Agency / UK Department for Energy Security and Net Zero Dr Mamatha Maheshwarappa - Head of Research and Development, UK Space Agency

Video recording Presentation Slides

Video recording - Keynote 5: European Space Agency Dr Sanjay Vijendran - Lead for the Solaris Initiative on Space-based Solar Power, ESA

## Session 1: System-Level Concepts 1

System Study of a Commercial-Scale Space-Based Solar Power (SBSP) System for Terrestrial Needs Mr Umberto Di Tommaso - Project Manager, Thales Alenia Space

Direct Sun Reflection SBSP Architecture for green hydrogen at scale Mr Arnaud Siraudin - Associate Director, Head of Innovation practice in France and Breakthrough Incubator competence center, Arthur D. Little

Space Solar System Design Output Mr David A. Homfray – Chief Technology Officer, Space Solar Ltd

A Significant Update to the Hyper-Modular Approach to Space Solar Power: SPS-ALPHA Mark-IV John C Mankins – Professor, Artemis Innovation Management Solutions, LLC

Space Resources, Blue Alchemist, and Power from Space Dr Vlada Stamenkovic - Senior Director, Space Resources Programme, Blue Origin

Keynote 8: Transforming Space Solar Power from a Novel Concept to a Bankable Climate Change Solution Wa'el Almazeedi - Co-founder & CEO, Avance Labs

## Session 2a: Energy Challenges

UK Energy Challenges Professor Paul Monks - Chief Scientific Advisor, Department for Energy Security and Net Zero

Role and Value of Space-Based Solar Power in the UK’s Net-Zero Energy System Prof Goran Strbac - Professor of Energy Systems, Imperial College London

## Session 2b: System-Level Concepts 2

The introduction of current development status of SSPS and OHISAMA project Dr Koichi Ijichi – Advisor, Japan Space Systems

Space Solar demonstration of retrodirective phased array with HARRIER Mike Hontoir - Space Energy Development Engineer, Satellite Applications Catapult

Space Solar Power and ancillary services Beaming (SSPB) – video recording Mr Gary Pearce Barnhard - President & CEO, Xtraordinary Innovative Space Partnerships, Inc. (XISP-Inc)

## Session 3a: System-Level Concepts 3

Power Beaming Demonstration - On-stage by Virtus Solis Technologies, Inc. Mr John Bucknell - CEO, Virtus Solis Technologies, Inc.

Non-geostationary SBSP Approaches Mr John Bucknell - CEO, Virtus Solis Technologies, Inc.

SOLSPACE: delivering global clean energy services using orbiting solar reflectors Professor Colin McInnes - James Watt Chair, Professor of Engineering Science, University of Glasgow

Sunlight After Dark Ben Nowack - CEO, Reflect Orbital

Development of a new Space-Based Solar Power Generation based on Solar Thermal Technology Sylvain Lecomte - CTO Space Segment, Rovial Space

## Session 3b: Economics

Techno-Economic Analysis of Space Based Solar Power and the Potential Impact of Space Weather - EDF Energy David Ferguson - Head of Net Zero Innovation, EDF Energy R&D UK Centre Sanaa Zannane - EDF Energy R&D UK Centre

A Meta-Analysis of recent Techno-Economic studies into SBSP Mr Peter Entwistle - Principal Consultant, Frazer-Nash Consultancy

Bridging to the Space Solar Power Economy – Staging the Enabling Addressable Markets and Financial Instruments for Economical Viability Jim Keravala – CEO, Offworld

SBSP in the context of the Energy Transition Dr Edward Tate – CTO and Founder, Virtus Solis Technologies, Inc.

Video recording - Keynote 10: Defense Advanced Research Projects Agency Dr Paul Jaffe - Programme Manager, Tactical Technology Office, DARPA

Video recording - Keynote 11: China Academy of Space Technology Xinbin Hou - Senior Researcher, Qian Xuesen Laboratory of Space Technology, China Academy of Space Technology (CAST)

Keynote 12: Korea Aerospace Research Institute Dr Durk-Jong Park - Principle Member of Research Staff, Korea Aerospace Research Institute

Video recording Presentation slides

## THREE ESSAYS ON THE ECONOMICS OF EDUCATIONAL OPPORTUNITY

• Affiliation: School of Education
• K-12 educational outcomes are a powerful reflection of social opportunity, both by meaningfully predicting adult wellbeing across measures like health and income, and by encapsulating the breadth of factors that contribute to a child’s preparedness, ability, and opportunity to learn and persist in school. In this light, the persistent deficits in educational outcomes experienced by individuals from traditionally disadvantaged identity groups and classes reflect systemic failures to meaningfully address the numerous shortcomings of education and social policy to create equal educational opportunities for all students. The three papers that comprise this dissertation aim to promote more equitable education and social policy by contributing valuable insights into three vital areas of policy that substantively shape the educational opportunities and outcomes of students in the United States. In the first, I extend the existing literature on how air pollutants can contribute to educational inequality by measuring the association between students’ proximity to hog farms, their feces lagoons, and fecal fertilizer spraying, and educational outcomes in North Carolina. In the second, I examine the most important school–level resource for student achievement –– teachers –– and how the processes by which students are assigned to classrooms enables the disproportionate assignment of lower performing, nonwhite, and low-income students to less effective teachers within their schools. And finally, I examine districts’ proposed spending of federal COVID–19 relief funds, what differences in spending strategies existed for these extremely flexible dollars, and what potential equity implications may exist for student academic learning recovery in the wake of the pandemic. Collectively, these papers contribute new knowledge in three important areas of education and social policy and foreground several promising future research directions by which greater educational equity and equality of social opportunity can be promoted.
• economics of education
• Education policy
• Education finance
• Public policy
• education policy
• https://doi.org/10.17615/c3d5-1b73
• Dissertation
• In Copyright - Educational Use Permitted
• Domina, Thurston
• Springer, Matthew G.
• Sartain, Lauren
• Lindsay, Constance A.
• Doctor of Philosophy
• University of North Carolina at Chapel Hill Graduate School

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Premium Google Slides theme, PowerPoint template, and Canva presentation template. If you want to study economics or econometrics (or both), be prepared to feel comfortable with numbers! But first, let's use this new template, which is totally customizable, to create a presentation in which you detail what this major has to offer. Watercolor ...

18. ECONOMETRICS Chapter # 1: Introduction Domodar N. Gujarati

3 "Econometrics is concerned with the empirical determination of economic laws" (Theil 1971). Econometrics is the all about Considering Economic theory, Collecting data for the variable of economic theory and applying statistical tools on the data while testing some hypothesis and drawn some conclusion that is helpful in the policy making.

19. PPT

IntroductionMethodology of Econometrics (8) Using model for control or policy purposes Y=4000= -231.8+0.7194 X X 5882 MPC = 0.72, an income of \$5882 Bill will produce an expenditure of \$4000 Bill. By fiscal and monetary policy, Government can manipulate the control variable X to get the desired level of target variable Y.

20. PPT

Types of Data and Notation • There are 3 types of data which econometricians might use for analysis: 1. Time series data 2. Cross-sectional data 3. Panel data, a combination of 1. & 2. • The data may be quantitative (e.g. exchange rates, stock prices, number of shares outstanding), or qualitative (e.g. day of the week).

21. PPT

Presentation Transcript. ECONOMETRICS I CHAPTER 4: CLASSICAL NORMAL LINEAR REGRESSION MODEL • Textbook: Damodar N. Gujarati (2004) Basic Econometrics, 4th edition, The McGraw-Hill Companies. 4.1 THE PROBABILITY DISTRIBUTION OF DISTURBANCES ui • The OLS estimators of and are both linear functions of ui, which is random by assumption.

22. Lecture Slides

Development Economics . Menu. More Info Syllabus Calendar Instructor Insights Video Lectures Lecture Slides Readings Assignments Problem Sets Replication Assignment Research Proposal Exams Lecture Slides. Session 1: Introduction (PDF - 1.8MB) Session 2: Poverty Traps: Theory (PDF - 1.0MB) ...

23. Free templates on Economy for Google Slides and PPT

Economy Presentation templates "Economy / Economics" can be a very broad concept. It can refer to the subject, or the university studies, to the economic activity of a country, or even how expenses are managed within a family (home economics). We must not forget economics as a science in charge of studying the creation of wealth or resources.

24. Introduction to Economics- Economics Simplified

INTRODUCTION TO ECONOMICS- ECONOMICS SIMPLIFIED. Subject: Economics. Age range: 14-16. Resource type: Lesson (complete) Videos. File previews. pptx, 1.15 MB. The presentation is lesson 1 of Economics. It is a basic introduction to Economics.

25. 2024 Spring ECON 100A 001 LEC 001

Course Catalog Description. section closed. This course introduces students to the main tools and concepts of microeconomics. These tools and concepts will serve as a foundation for many upper level economics courses. Topics covered include consumer theory, producer theory, equilibrium in a competitive market, monopoly, general equilibrium, and ...

26. Day 1 Presentations

Keynote 12: Korea Aerospace Research Institute. Dr Durk-Jong Park - Principle Member of Research Staff, Korea Aerospace Research Institute. Video recording. Presentation slides. View the speaker presentations from day 1 of the International Conference on Energy from Space, which took place in London on 17-19 April 2024!

27. Dissertation or Thesis

Poster, Presentation, Protocol or Paper. Deposit scholarly works such as posters, presentations, research protocols, conference papers or white papers. If you would like to deposit a peer-reviewed article or book chapter, use the "Scholarly Articles and Book Chapters" deposit option.