Multicollinearity or collinearity refers to a situation where two or more variables of a regression model are highly correlated. Because of the high correlation, it is difficult to disentangle the pure effect of one single explanatory variables 
Tag Archives: Econometrics
Linear Regression
A linear regression is a special case of the classical linear regression models that describes the relationship between two variables by fitting a linear equation to observed data. Thereby, one variable is considered to be the explanatory (or independent) variable, and the other variable is considered to be the dependent variable. For instance, an econometrician might want to relate weight to their calorie consumption using a linear regression model.
Clustered Standard Errors in STATA
In STATA clustered standard errors are obtained by adding the option cluster(variable_name) to your regression, where variable_name specifies the variable that defines the group / cluster in your data. The summary output will return clustered standard errors. Here is the syntax:
regress x y, cluster(variable_name)
Below you will find a tutorial that demonstrates how to Continue reading Clustered Standard Errors in STATA
Julia-R Cheatsheet – Mathematical Operations
Mathematical Operations
What are the commands for the most important mathematical operations in Julia and R? The following table translates the most common Julia commands into R language.
Continue reading Julia-R Cheatsheet – Mathematical Operations
Julia-R Cheatsheet – Accessing Vector/Matrix Elements
Accessing Vector/Matrix Elements
How to access vector and matrix elements in Julia and R? The following table translates the most common Julia commands into R language.
Continue reading Julia-R Cheatsheet – Accessing Vector/Matrix Elements
Julia-R Cheatsheet – Manipulating Vectors and Matrices
Manipulating Vectors and Matrices
How to manipulate vectors and matrices in Julia and R? The following table translates the most common Julia commands into R language.
Continue reading Julia-R Cheatsheet – Manipulating Vectors and Matrices
Julia-R Cheatsheet – Creating Random Numbers
Creating Random Numbers
How to create random number in Julia and R? The following table translates the most common Julia commands into R language.
Continue reading Julia-R Cheatsheet – Creating Random Numbers
Julia-R Cheatsheet – Creating Matrices
Creating Matrices
How to create matrices in Julia and R? The following table translates the most common Julia commands into R language.
Julia-R Cheatsheet – Creating Vectors
Creating Vectors
How to create vectors in Julia and R? The following table translates the most common Julia commands into R language.
Seasonal Adjustment in R
The package ‘Seasonal’ facilitates seasonal adjustment in R. The R package provides an easy-to-handle wrapper around the X-13ARIMA-SEATS Fortran libraries provided by the US Census Bureau. X-13ARIMA-SEATS is the state-of-the-art seasonal adjustment software produced, distributed, and maintained by the Census Bureau. Continue reading Seasonal Adjustment in R
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