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ECON 510 Probability and Statistics II

Ordinary Least Squares: basic assumption, estimation and tests of hypotheses, the coefficient of determination, prediction, functional forms, the problem of choosing between them and specification tests, multicollinearity. Dummy Variables, testing structural change, estimating the prediction error variance and pooling cross-sectional and time-series data. Lagged dependent variables, binary dependent variables. Autocorrelation and heteroscedasticity. Simultaneous equations; identification and single-equation estimation techniques. Credit units: 3 ECTS Credit units: 5.

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