Linear Regression

Linear regression is the starting point of econometric analysis.  The linear regression model has a dependent variable that is a continuous variable, while the independent variables can take any form (continuous, discrete, or indicator variables).  A simple linear regression model has only one independent variable, while a multiple linear regression model has two or more independent variables.  The linear regression is typically estimated using OLS (ordinary least squares). Examples include studying the effect of education on income; or the effect of recession on stock returns.

Linear regression model: topics covered
  • Linear regression model
  • Coefficients and marginal effects
  • Tests for coefficient significance and interpretation
  • Prediction for dependent variable
  • Goodness of fit (R-squared)

Linear Regression

Linear Regression Example

Linear Regression in Stata

Linear Regression in R

Linear Regression in SAS