The Probit Model is used when we have a binary or qualitative dependent variable in the model. Similar to the Logit Model, the Probit Model overcomes the difficulties or problems…
The Logit Model is used to estimate models with a qualitative binary dependent variable. It overcomes the problems associated with the Linear Probability Model (LPM). In the post on LPM,…
The Linear Probability Model is an application of Ordinary Least Squares to qualitative response or dependent variables. We often encounter dependent variables that are continuous, such as income or consumption,…
The Random Effects Model is also sometimes called the Error Components Model or the Two-error structure approach. The Fixed Effects Model has some problems such as the use of dummy…
The Fixed Effects Model for Panel data should only be applied if the cross-sectional or time-specific effects are significant. In the case where these effects are insignificant, a simple Pooled…
The Least Squares Dummy Variables or LSDV approach is one of the ways to estimate the Fixed Effects Model. Hence, the Fixed Effects Model is sometimes called the Least Squares…
Dr. Monkombu Sambasivan Swaminathan or M. S. Swaminathan was a prominent Indian agricultural scientist and geneticist. Furthermore, he was known for pioneering contributions to agricultural research, food security, and sustainable…
The Nationalisation of Banks in India refers to the significant policy move undertaken by the Indian government in 1969 and subsequently in 1980. The move aimed to bring the majority…
The Green Revolution in India refers to a period of significant agricultural transformation during the 1960s and 1970s. It was a set of initiatives aimed at increasing agricultural productivity through…
Foreign Direct Investment or FDI refers to investments made by entities from one country into businesses or entities in another country, with the aim of establishing a significant level of…
Globalization implies the interconnectedness and integration of economies, cultures, and societies worldwide. furthermore, it is driven by advancements in technology, communication, transportation, and trade. Globalization allows goods, services, information, ideas,…
The New Economic Policy of 1991 introduced a series of reforms in the Indian Economy during Prime Minister P.V. Narasimha Rao's tenure. Dr. Manmohan Singh is considered the architect of…
Economists James Durbin and Geoffrey Watson developed the Durbin Watson test in the early 1950s. They introduced the test in their paper "Testing for Serial Correlation in Least Squares Regression:…
Autocorrelation occurs when the error terms in the model exhibit correlation or dependency on each other. That is, errors in previous periods influence the errors in the current period. Economists…
Multicollinearity refers to a situation where the independent or explanatory variables in the model have a strong relationship with each other. Perfect multicollinearity exists if the correlation coefficient for these…
