Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Authors: Samuel Cameron
Chapter from: "Econometrics"
Published by: McGraw Hill Education
Published in: 2005

Abstract

Chapter 8. The book aims to introduce students with little or no previous experience in econometrics to this important discipline. This text focuses on explaining why econometrics exists and how it can be used in everyday life. This text adopts a strong student-focused approach to the discipline. In doing so, it aims to address fundamental issues in econometrics in an accessible manner for students, who are often put off by the difficult nature of the subject. The learning objectives of this chapter are: (1) be aware of the types of situations in which a limited dependent variable may be used; (2) understand the limitations of OLS (ordinary least squares) applied to models with limited dependent variables; (3) be able to interpret the coefficients of the linear probability model, the logit model and the probit model; (4) be aware of the goodness of fit measures used for logit and probit models and their limitations; and (5) be able to critically assess articles which use logit and probit models, especially with respect to the interpretation of coefficients.

About

Abstract

Chapter 8. The book aims to introduce students with little or no previous experience in econometrics to this important discipline. This text focuses on explaining why econometrics exists and how it can be used in everyday life. This text adopts a strong student-focused approach to the discipline. In doing so, it aims to address fundamental issues in econometrics in an accessible manner for students, who are often put off by the difficult nature of the subject. The learning objectives of this chapter are: (1) be aware of the types of situations in which a limited dependent variable may be used; (2) understand the limitations of OLS (ordinary least squares) applied to models with limited dependent variables; (3) be able to interpret the coefficients of the linear probability model, the logit model and the probit model; (4) be aware of the goodness of fit measures used for logit and probit models and their limitations; and (5) be able to critically assess articles which use logit and probit models, especially with respect to the interpretation of coefficients.

Related