L2 Encompassing

This lecture explains the concept of encompassing, and how it applies to construction of good regression models

This was the original lecture L2 which was given at the Applied Regression Analysis workshop for PIDE Faculty - It covered a lot of different topics and was a fairly advanced lecture. Later, cross-check led to the realization that very few people understood that lecture. As a result, the lecture was substantially simplified, by reducing its focus to just one topic, namely choice of regressors. On this one topic, several lectures are available. But the one closest to this one is on my Islamic WorldView blog -- See:

Choosing the Right Regressors

EM L2: Encompassing: Construction of Good Regression Models — Explains how to use Hendry Methodology to construct good regression models