计量经济学软件EViews10.0应用教程-陈昭-chapter2 （更新）.pptxVIP

Chapter 2  The Simple Regression Modely = b0 + b1x + u1 Main ContentsDefinition of the Simple Regression ModelDeriving the OLS EstimatesAlgebraic Properties of OLS StatisticsUnits of Measurement and Functional FormStatistical Properties of OLS estimators2 Definition of the Simple Regression Model3 Some Terminology In the simple linear regression model, where y = b0 + b1x + u, we typically refer to y as theDependent Variable, orLeft-Hand Side Variable, orExplained Variable, orRegressand4 Some Terminology In the simple linear regression of y on x, we typically refer to x as theIndependent Variable, orRight-Hand Side Variable, orExplanatory Variable, orRegressor, orCovariate, orControl Variables5 Some TerminologyEquation y = b0 + b1x + u has only one nonconstant regressor x, it is called a simple linear regression model, or two-variables regression model, or bivariate linear regression model. y and x: linearity. A one-unit change in x has the same effect on y, regardless of the initial value of x. This is unrealistic for many economic applications. E.g., in the wage-education example, we might want to allow for increasing returns: the next year of education has a larger effect on wages than did the previous year.6 Some TerminologyThe coefficients b0, b1 are called the regression coefficients. b0 is also called the constant term or the intercept term, or intercept parameter. b1 represents the marginal effects of the regressor, x. It is also called the slope parameter.7 Some TerminologyThe variable u is called the error term or disturbance in the relationship. It represents factors other than x that can affect y. Meaning of linear: linear means linear in parameters, not necessarily mean that y and x must have a linear relationship.There are many cases that y and x have nonlinear relationship, but after some transformation, they are linear in parameters.For example, y=eb0+b1x+u .8 Example: Soybean Yield and FertilizerSuppose that soy