Economics at Zero Marginal Cost

 

Unit – I Nature and Scope of Econometrics and CLRM: Nature and Concept of Econometrics; Distinction between Economic Model and Econometric model; Concept of stochastic relation, Role of random disturbance in econometric model; Types of data; Classical Linear Regression Model (Simple linear regression and multiple linear regression) – the classical assumptions. Unit – II Estimation of Classical Linear Regression Model: Estimation of model by method of ordinary least squares (Derivation in simple linear model (SLRM) and multiple linear model (MLRM) with two regressors only); Simple correlation, partial correlation and multiple correlation (Definition, and interpretation in the context of SLRM and MLRM); Economic interpretations of the estimated model; Properties of the Least Squares Estimators (BLUE) in SLRM- Gauss-Markov theorem; Qualitative (dummy) independent variables – interpretation of slope dummy and intercept dummy. Unit – III Statistical Inference: Use of standard normal, χ2, t,...