New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

EXAM2 Study Guide

by: Mike Meng

EXAM2 Study Guide Econ 526

Marketplace > Kansas > Economcs > Econ 526 > EXAM2 Study Guide
Mike Meng
GPA 3.46

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

EXAM2 Study Guide
Intro to Econometrics
Zach Raff
Study Guide
50 ?




Popular in Intro to Econometrics

Popular in Economcs

This 3 page Study Guide was uploaded by Mike Meng on Saturday April 16, 2016. The Study Guide belongs to Econ 526 at Kansas taught by Zach Raff in Winter 2016. Since its upload, it has received 33 views. For similar materials see Intro to Econometrics in Economcs at Kansas.


Reviews for EXAM2 Study Guide


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 04/16/16
University of Kansas ECON 526: Introduction to Econometrics Exam #2 Study Guide Exam Info: Next Tuesday, April 19, during class. The exam will cover S & W Chapters 6-9, 11, and any other information covered during lecture. The items listed below are for those specific items themselves. In addition, know how to explain the mathematical concepts in words. The following is a list of broad topics. Make sure you know how to do problems similar to the examples covered in lecture and in the homework for each topic (e.g., interpreting a change in Xs effect on Y for nonlinear models; always know how to interpret results). Finally, similar to the first exam, you are allowed one page (front and back) of notes; this page must be written (not computer printed). You may include anything you like on this page (e.g., formulas, example problems, Stata commands, etc.), and you will turn this page in with your exam. Items to Know for the Exam (in the order they appeared in lecture): Ch. 6 – Linear Regression with Multiple Regressors 1. Why we include multiple Xs – omitted variable bias (key requirements for OVB) 2. Find OVB by splitting data into groups 3. Interpreting slope coefficients (remember, holding the other Xs constant) 4. Calculating predicted value of Y in multiple regression model 5. Measures2of fit for multiple regressio2 model (change i2 formulas of standard measures plus adjusted R – important differences of R and adjusted R ) 6. OLS assumptions of multiple regression – what we add and what we change 7. Perfect v. imperfect multicollinearity; dummy variable trap and solutions Ch. 7 – Hypothesis Tests and Confidence Intervals in Multiple Regression 1. Calculating SEs, t-scores, p-values, and confidence intervals in multiple regression 2. Joint hypothesis testing (why can’t we test separately?) 3. F-statistic – calculating, critical values, overall F-stat, various restrictions, etc. 4. Calculating homoskedasticity-only F-stats 5. Testing single restrictions with multiple coefficients 6. Confidence intervals for multiple coefficients (when to reject the null hypothesis) 7. Model specification (when to use certain variables, how to eliminate OVB, etc.) 8. Control variables 8.1. Good examples 8.2. Math behind them (conditional mean independence) 9. Implications of variable selection and outreg2 10. Problems with R , adjusted R 2 1 Ch. 9 – Assessing Studies Based on Multiple Regression 1. Definition of validity 2. Distinguish between the two types of validity (which is imperative for our estimates?) 3. Threats to external validity (2 threats and solutions) 4. Threats to internal validity (5 threats and solutions) 5. Internal validity problems, what is wrong with the estimates? (biased and inconsistent – know mathematical definitions of these two) Ch. 8 – Nonlinear Regression Functions 1. Why do we use nonlinear functions? (change in Y depends on value of X) 2. General approach to modeling nonlinearities 3. Correct functional form for nonlinear models (remember to include the “steps”) 4. Polynomial regression model (why do we use it, what are the positives, etc.) 5. Sequential hypothesis testing 6. Interpretation of slope coefficients, interpretation of a change in Y based on a change in X 7. Logarithmic regression models (why do we use them, what are the positives, etc.) – interpret slope coefficients for each of the following 7.1. Linear-log model 7.2. Log-linear model 7.3. Log-log model 8. Interactions between Xs (why do we do this, what are the positives, etc.) – interpret various slope coefficients 8.1. Binary-binary interactions 8.2. Continuous-binary interactions 8.3. Continuous-continuous interactions Ch. 11 – Regression with a Binary Dependent Variable 1. What is the difference between these models and those with a continuous Y? 2. Linear probability model – interpret slope coefficients, perform hypothesis tests, etc. 3. Prove predicted Y is P(Y = 1 | X , … X ) 1 k 4. Problems with linear probability model 5. Probit regression model – general characteristics (model, cumulative density function, forces predicted probabilities to be between 0 and 1 (find them), interpret slope coefficients, etc.) 6. Logit regression model – general characteristics (model, cumulative density function, forces predicted probabilities to be between 0 and 1 (find them), interpret slope coefficients, etc.) 7. Maximum Likelihood Estimation 2 8. Measures of fit in binary dependent variable models; why is R a poor measure Stata *** Know when to reject and when to fail to reject the null hypothesis! 2 1. Reading Stata output and calculating missing pieces (similar to homework with A-E components missing) 2. Performing multiple regression 3. Reading various scatterplots 4. How to alter variables (get continuous variables to be binary, split data into groups, etc.) 5. Check for multicollinearity; solutions 6. Tests of joint hypotheses 7. Tests of single restrictions with multiple coefficients 8. outreg2 and finding robustness of results (same conclusion no matter the specification or estimator) 9. Factor variables (# for interact, remember c. or i. before variable name) 10. Sequential hypothesis testing for polynomials (interact variable with itself) 11. Create log variables (natural log) 12. Interact two Xs 13. Probit regression 14. Logit regression 3


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.