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1 Econometrics 1 Lecture 6 Multiple Regression -tests.

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Presentation on theme: "1 Econometrics 1 Lecture 6 Multiple Regression -tests."— Presentation transcript:

1 1 Econometrics 1 Lecture 6 Multiple Regression -tests

2 2 Testing Restrictions in a Multiple Regression Model

3 3 F-test in the Aggregate Demand Model

4 4 Prediction and Forecasts

5 5 Variance of the Forecast Error

6 6 Decomposition of the Forecast Error

7 7 Forecasting and Decomposition of Forecast Variance

8 8 Consider a Multiple Regression with Three Variables and No Constant

9 9 Restrictions in Matrix Notation

10 10 Variance of Errors and Parameters

11 11 F-test on Restriction

12 12 Program to test restriction

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

14 14 Bias in Restriction

15 15 Omitted Variables: Test

16 16 Test for Mis-specification


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