Econometrics

Multiple Regression Analysis: Estimation, Interpretation & R-Squared

Multiple regression analysis estimates the effect of each independent variable on Y while holding all others constant.

13 min readLevel: CoreCalculatorExcel model

Hypothesis Testing in Regression: t-Tests, F-Tests & Confidence Intervals

Learn how to test regression coefficients using t-tests, F-tests, p-values, and confidence intervals, with worked finance examples and the key distinction…

13 min readLevel: CoreCalculatorExcel model

Regression Functional Forms: Log Models, Quadratics & Interaction Terms

Learn how to choose and interpret regression functional forms including log-level, level-log, log-log, quadratic, and interaction term specifications…

11 min readLevel: CoreCalculatorExcel model

Dummy Variables in Regression: Qualitative Data, Interactions & Chow Test

Learn how dummy variables encode qualitative data in regression models, including intercept shifts, multiple categories, interaction terms, the Chow test…

12 min readLevel: CoreCalculatorExcel model

Omitted Variable Bias, Multicollinearity & Common Regression Pitfalls

Learn what omitted variable bias is, how to sign the direction of bias, and how multicollinearity, measurement error, and proxy variables affect regression…

12 min readLevel: CoreCalculatorExcel model

Heteroskedasticity: Detection, Consequences & Robust Standard Errors

Learn what heteroskedasticity is, why it biases standard errors but not OLS coefficients, how to detect it with the Breusch-Pagan and White tests…

13 min readLevel: CoreCalculatorExcel model

Serial Correlation: Durbin-Watson Test, HAC Standard Errors & FGLS

Learn how serial correlation affects regression analysis — detection with Durbin-Watson and Breusch-Godfrey tests, correction with Newey-West HAC standard…

12 min readLevel: CoreCalculatorExcel model

Panel Data Analysis: Fixed Effects, Random Effects & the Hausman Test

Learn panel data analysis: fixed effects, random effects, the Hausman test, pooled OLS, first differencing, and two-way fixed effects.

16 min readLevel: Advanced

Difference-in-Differences: Natural Experiments & Causal Estimation

Learn how difference-in-differences isolates causal effects from natural experiments by comparing treatment and control groups before and after a policy change.

17 min readLevel: Advanced

Instrumental Variables & Two-Stage Least Squares: Solving Endogeneity

Learn how instrumental variables and two-stage least squares (2SLS) solve endogeneity in econometric models. Covers instrument validity, weak instruments…

19 min readLevel: AdvancedCalculatorExcel model

Logit & Probit Models: Binary Dependent Variables in Regression

Learn how logit and probit models handle binary dependent variables using maximum likelihood estimation. Covers odds ratios, marginal effects, and model…

15 min readLevel: Advanced

Cointegration, Unit Root Tests & Error Correction Models

Learn about cointegration, unit root tests and error correction models for analyzing long-run equilibrium relationships in finance.

13 min readLevel: CoreCalculatorExcel model

The Linear Probability Model: When the Dependent Variable Is Binary

The linear probability model (LPM) applies OLS to a binary dependent variable, interpreting coefficients as percentage-point changes in probability.

12 min readLevel: Advanced

Causal Inference in Econometrics: RDD, Propensity Scores & Treatment Effects

A unified framework for causal inference in econometrics. Covers the potential outcomes framework, selection bias, ATE vs ATT vs LATE, randomized controlled…

17 min readLevel: Advanced