Tag: econometric models
Cross-Sectional Econometric Analysis: Techniques and Best Practices
Cross-sectional econometric analysis is a fundamental approach in applied economics that provides insights into economic behavior at a specific point in time. In this article, we explore the key techniques, tools, and examples to effectively conduct a cross-sectional econometric analysis. Understanding Cross-Sectional Econometric Analysis A cross-sectional econometric analysis examines data collected from multiple subjects—such as…
2SLS Instrumental Variables: Proven Method to Fix Endogeneity (2025 Guide)
2SLS Instrumental Variables: Proven Method to Fix Endogeneity (2025 Guide) Excerpt: Learn how 2SLS instrumental variables resolve endogeneity problems in regression analysis. This guide covers the principles, stages, assumptions, and real-world applications of Two-Stage Least Squares. Understanding Instrumental Variables and the Two-Stage Least Squares (2SLS) Method Table of Contents Introduction Endogeneity Problem in Econometrics What…
Powerful Guide: 5 Key Insights on Maximum Likelihood Estimation Econometrics
Ultimate Guide: 7 Steps to Master Maximum Likelihood Estimation Econometrics Explore the core principles, practical steps, and critical applications of maximum likelihood estimation in econometrics with real-world relevance. Table of Contents 1. What Is Maximum Likelihood Estimation? 2. Why Is MLE Important in Econometrics? 3. Seven-Step MLE Procedure 4. Real-World Econometric Applications 5. MLE vs…
Endogeneity Instrumental Variables: 7 Proven Solutions to Econometric Bias
Understanding Endogeneity and Instrumental Variables Published on May 24, 2025 Visual representation of the endogeneity problem and instrumental variable solution. Table of Contents Introduction What is Endogeneity? Why It Matters Major Causes of Endogeneity How Instrumental Variables Solve Endogeneity Conditions for Valid IV Practical Example Conclusion Introduction to Endogeneity Instrumental Variables Endogeneity instrumental variables are…