Exclusion restrictions - PowerPoint PPT Presentation

Multiple Regression Analysis

Multiple Regression Analysis. y = b 0 + b 1 x 1 + b 2 x 2 + . . . b k x k + u 2. Inference. Assumptions of the Classical Linear Model (CLM). So far, we know that given the Gauss-Markov assumptions, OLS is BLUE,

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Multiple Regression Analysis

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Identification

Identification An equation is said to be identified if we have enough information to obtain estimates of its structural parameters. A model is said to be identified if all its equations are identified.

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