1 Econometrics 1 Lecture 6 Multiple Regression -tests

2 Testing Restrictions in a Multiple Regression Model

3 F-test in the Aggregate Demand Model

4 Prediction and Forecasts

5 Variance of the Forecast Error

6 Decomposition of the Forecast Error

7 Forecasting and Decomposition of Forecast Variance

8 Consider a Multiple Regression with Three Variables and No Constant

9 Restrictions in Matrix Notation

10 Variance of Errors and Parameters

11 F-test on Restriction

12 Program to test restriction

13 Demand for a good: Restrictions on Price and Income Elasticities

14 Bias in Restriction

15 Omitted Variables: Test

16 Test for Mis-specification