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    • EconometricsTheory and application of econometric models
      • Time Series
        • Stationarity
          • Stationarity and Stationary Time Series
          • Random Walk Model and Stationarity
          • Autocorrelation function and Stationarity
          • Interpreting ACF and PACF plots
          • Dickey Fuller Test of Stationarity
          • ADF Test: Augmented Dickey Fuller Equation
          • Order of Integration of a time series
        • VAR and Cointegration
          • Vector Autoregression: VAR Model Specification
          • Cointegration: Meaning, Tests and Models
          • Vector Error Correction (VECM) and VAR: Theory
          • VECM Estimation and Interpretation
          • Impulse Response Functions after VAR and VECM
        • ARIMA Model Estimation and Model Selection
        • Seasonality and Seasonal-ARIMA models
      • Simultaneous Equation Models
        • Simultaneous Equation Bias
        • Identification: Rank and Order Conditions
        • Two-Stage Least Squares (2SLS) Estimation
        • Indirect Least Squares Estimation
        • 3SLS: Three-Stage Least Squares
        • Test of Endogeneity: Durbin-Wu-Hausman Test
        • Test of Overidentifying Restrictions: Sargan Test
      • Ordinary Least Squares
        • Ordinary Least Squares Estimation
        • Interpretation of Coefficients: OLS
        • Heteroscedasticity
          • Heteroscedasticity: Causes and Consequences
          • White Test for Heteroscedasticity
          • Breusch Pagan test for Heteroscedasticity
          • Goldfeld Quandt Test for Heteroscedasticity
          • Weighted Least Squares Estimation
        • Autocorrelation: Causes and Consequences
          • Durbin Watson Test for Autocorrelation
        • Multicollinearity: Detection and Solutions
      • Goodness of fit
        • R square and its drawback
        • Adjusted R Square and its application
        • Robust Standard Errors and OLS Standard Errors
        • Information Criteria (AIC/SIC) and Model Selection
        • Goodness-of-fit for Logit and Probit Models
        • VAR-VECM Goodness of fit
        • Ramsey’s RESET Test: Functional Form Misspecification
      • Panel Data
        • Panel Data: Meaning and Analysis Methods
        • Fixed Effects Model: LSDV Approach
        • Pooled OLS vs Fixed Effects Model: F-test
        • Random Effects Model: Assumptions and GLS Estimation
        • Lagrange Multiplier Test: testing for Random Effects
        • Wu-Hausman Test: Choosing between Fixed and Random Effects
      • Qualitative Response
        • Linear Probability Model (LPM): Meaning and Problems
        • Logit Model: Theory and Estimation
        • Probit Model: Theory and Estimation
      • Do it in Rstudio
        • OLS in Rstudio
        • Goodness of fit in Rstudio
        • ARIMA and SARIMA in Rstudio
        • VAR in R: Estimation, Goodness and IRFs
    • MicroeconomicsMicroeconomic Theory and Application
      • Consumer Behaviour
        • Cardinal Utility Analysis and Law of Diminishing Returns
        • Indifference Curves and Ordinal Utility Analysis
        • Demand, Income-Consumption and Engel Curves
        • Income and Substitution Effects: Hicks and Slutsky Methods
        • Revealed Preference Theory
        • Choice under Uncertainty and Risk
      • Theory of Costs, Production and Producer Equilibrium
        • Production
          • Law of Variable Proportions: Short-run production
          • Isoquants and Returns to Scale: Long-run Production
          • Production Function: Definition and Types
          • Cobb Douglas Production Function
          • Technical Progress and Economic Zone of Production
        • Costs
          • Short-run Costs: Total, Average and Marginal Costs
          • Producer Equilibrium: Isoquants, Isocost line and Expansion
          • Long-run Costs and Economies of Scale
        • Multi-product firms and simultaneous equilibrium
          • Production Possibility Curve (PPC)
          • Multi-product Firm and Production Contract Curve
          • Simultaneous Equilibrium of Consumers and Producers
      • Demand and Supply
        • Law of Demand and Supply
        • Types of Elasticity and their Measurement
        • Market Equilibrium, Shifts and Role of Elasticity
        • Price Control and Dead-weight Loss
      • Market Failure
        • Market Failure: Definition, Causes and Examples
        • Public Goods: Meaning and Cause of Market Failure
        • Asymmetric Information: Meaning, Types and Market Failure
        • Principal-Agent Problem and Market Failure
        • Tragedy of the Commons
    • Macroeconomics
      • Difference between Microeconomics and Macroeconomics
      • Inflation
        • Phillips Curve: Short run and Long run
        • Types of Inflation: Meaning, Causes and Consequences
        • Demand-Pull Inflation: Meaning, Causes and Examples
        • Cost-Push Inflation: Meaning, Causes and Examples
        • Stagflation: Meaning, Causes and Consequences
        • Deflation: Meaning, Causes and Consequences
        • Wholesale Price Index (WPI): Meaning and Significance
      • Monetary and Fiscal Policy
        • Monetary Policy: Meaning, Objectives and Types
        • Instruments of Monetary Policy: Types and Uses
        • Fiscal Policy: Meaning, Objectives and Types
        • Instruments of Fiscal Policy: Types and Uses
      • Consumption function
        • Absolute Income Hypothesis
        • Permanent Income Hypothesis
        • Relative Income Hypothesis
        • Life-cycle hypothesis: Ando and Modigliani
      • Investment
        • Accelerator Theory and its Process
        • Tobin’s Q Theory of Investment
    • Development Economics
      • Basic Ideas and Theories
        • Basic Theories
          • Low-Level Equilibrium Trap: Nelson
          • Three Core Values of Development
          • Vicious Circle of Poverty
          • Kuznets’ Inverted-U Hypothesis
          • Trickle-Down Economics
          • Dependency Theory of Development
          • Brain Drain
        • Gender Development Index: GDI
        • Gender Inequality Index: GII
        • Importance of Sustainable Development
        • Economic Imperialism: Causes & Consequences
        • Inclusive Development: Meaning and Features
        • Infrastructure Development: Need and Importance for Growth
        • Globalization: Advantages and Disadvantages
      • Structural Change
        • Lewis Model of Structural Change
        • Fei and Ranis Model of Structural Change
        • Rostow’s Stages of Economic Growth
    • Indian Economy
      • Policies and Acts
        • New Economic Policy of 1991
        • Nationalisation of Banks in India
        • Planning in India: The Five-Year Plans
        • Demonetisation in India: Consequences
        • Competition Act 2002
        • MRTP Act 1969
        • FRBM Act 2003
        • SEBI Act 1992
      • Foreign Direct Investment in India
      • Green Revolution in India
      • Consumer Price Index in India (CPI): Role and Significance
      • Father of Green Revolution: M.S. Swaminathan
    • International Economics
      • Basic Terms
        • Foreign Direct Investment (FDI): Meaning and Importance
        • Multinational Corporations or MNCs: Role and Importance
        • Special Economic Zones or SEZs: Meaning and Types
        • Industrial Parks
        • Free Trade Zones or FTZs
        • Export Processing Zones or EPZs
      • Ideas and Theories
        • Mercantilism: Meaning, History and Examples
        • Absolute Advantage Theory of International Trade
        • Comparative Advantage Theory of International Trade
    • Statistics
      • Distributions
        • Normal Distribution
        • t-Distribution
        • F-distribution
        • Chi-square Distribution
        • Bernoulli Distribution
        • Binomial Distribution
        • Poisson Distribution
      • Sampling Methods
        • Sampling Methods: Overview
        • Probability Sampling Methods
          • Simple Random Sampling
          • Stratified Sampling
          • Cluster Sampling
          • Systematic Sampling
        • Non-Probability Sampling Methods
          • Purposive Sampling
          • Convenience Sampling
          • Quota Sampling
          • Snowball Sampling
      • Mann Whitney U Test: Wilcoxon Rank Sum Test
      • Kolmogorov Smirnov Test: KS Test
      • Shapiro Wilk Test for Normality
    • Famous Economists
      • Adam Smith: Father of Economics
      • David Ricardo: Contributions and Legacy
      • Alfred Marshall: Contributions to Economics
  • My Account
  • Schedule now!
  • Video Tutorials
    • Fixed and Random Effects Models
    • ARIMA And SARIMA Models
    • VECM: Video Tutorial Series
    • VAR Model and Impulse Response Functions (IRFs)
    • 3SLS Video Tutorial Series
    • 2SLS Video Tutorial Series
    • Bundle: 2SLS and 3SLS
    • Logit and Probit Model
    • Heteroscedasticity, Autocorrelation and Multicollinearity: Basics
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      • Our Services
      • Modules for Econometrics
      • Policies
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  • Blog
    • Econometrics
      • Time Series
        • Stationarity
          • Stationarity and Stationary Time Series
          • Random Walk Model and Stationarity
          • Autocorrelation function and Stationarity
          • Interpreting ACF and PACF plots
          • Dickey Fuller Test of Stationarity
          • ADF Test: Augmented Dickey Fuller Equation
          • Order of Integration of a time series
        • VAR and Cointegration
          • Vector Autoregression: VAR Model Specification
          • Cointegration: Meaning, Tests and Models
          • Vector Error Correction (VECM) and VAR: Theory
          • VECM Estimation and Interpretation
          • Impulse Response Functions after VAR and VECM
        • ARIMA Model Estimation and Model Selection
        • Seasonality and Seasonal-ARIMA models
      • Simultaneous Equation Models
        • Simultaneous Equation Bias
        • Identification: Rank and Order Conditions
        • Two-Stage Least Squares (2SLS) Estimation
        • Indirect Least Squares Estimation
        • 3SLS: Three-Stage Least Squares
        • Test of Endogeneity: Durbin-Wu-Hausman Test
        • Test of Overidentifying Restrictions: Sargan Test
      • Ordinary Least Squares
        • Ordinary Least Squares Estimation
        • Interpretation of Coefficients: OLS
        • Heteroscedasticity
          • Heteroscedasticity: Causes and Consequences
          • White Test for Heteroscedasticity
          • Breusch Pagan test for Heteroscedasticity
          • Goldfeld Quandt Test for Heteroscedasticity
          • Weighted Least Squares Estimation
        • Autocorrelation: Causes and Consequences
          • Durbin Watson Test for Autocorrelation
        • Multicollinearity: Detection and Solutions
      • Goodness of fit
        • R square and its drawback
        • Adjusted R Square and its application
        • Robust Standard Errors and OLS Standard Errors
        • Information Criteria (AIC/SIC) and Model Selection
        • Goodness-of-fit for Logit and Probit Models
        • VAR-VECM Goodness of fit
        • Ramsey’s RESET Test: Functional Form Misspecification
      • Panel Data
        • Panel Data: Meaning and Analysis Methods
        • Fixed Effects Model: LSDV Approach
        • Pooled OLS vs Fixed Effects Model: F-test
        • Random Effects Model: Assumptions and GLS Estimation
        • Lagrange Multiplier Test: testing for Random Effects
        • Wu-Hausman Test: Choosing between Fixed and Random Effects
      • Qualitative Response
        • Linear Probability Model (LPM): Meaning and Problems
        • Logit Model: Theory and Estimation
        • Probit Model: Theory and Estimation
      • Do it in Rstudio
        • OLS in Rstudio
        • Goodness of fit in Rstudio
        • ARIMA and SARIMA in Rstudio
        • VAR in R: Estimation, Goodness and IRFs
    • Microeconomics
      • Consumer Behaviour
        • Cardinal Utility Analysis and Law of Diminishing Returns
        • Indifference Curves and Ordinal Utility Analysis
        • Demand, Income-Consumption and Engel Curves
        • Income and Substitution Effects: Hicks and Slutsky Methods
        • Revealed Preference Theory
        • Choice under Uncertainty and Risk
      • Theory of Costs, Production and Producer Equilibrium
        • Production
          • Law of Variable Proportions: Short-run production
          • Isoquants and Returns to Scale: Long-run Production
          • Production Function: Definition and Types
          • Cobb Douglas Production Function
          • Technical Progress and Economic Zone of Production
        • Costs
          • Short-run Costs: Total, Average and Marginal Costs
          • Producer Equilibrium: Isoquants, Isocost line and Expansion
          • Long-run Costs and Economies of Scale
        • Multi-product firms and simultaneous equilibrium
          • Production Possibility Curve (PPC)
          • Multi-product Firm and Production Contract Curve
          • Simultaneous Equilibrium of Consumers and Producers
      • Demand and Supply
        • Law of Demand and Supply
        • Types of Elasticity and their Measurement
        • Market Equilibrium, Shifts and Role of Elasticity
        • Price Control and Dead-weight Loss
      • Market Failure
        • Market Failure: Definition, Causes and Examples
        • Public Goods: Meaning and Cause of Market Failure
        • Asymmetric Information: Meaning, Types and Market Failure
        • Principal-Agent Problem and Market Failure
        • Tragedy of the Commons
    • Macroeconomics
      • Difference between Microeconomics and Macroeconomics
      • Inflation
        • Phillips Curve: Short run and Long run
        • Types of Inflation: Meaning, Causes and Consequences
        • Demand-Pull Inflation: Meaning, Causes and Examples
        • Cost-Push Inflation: Meaning, Causes and Examples
        • Stagflation: Meaning, Causes and Consequences
        • Deflation: Meaning, Causes and Consequences
        • Wholesale Price Index (WPI): Meaning and Significance
      • Monetary and Fiscal Policy
        • Monetary Policy: Meaning, Objectives and Types
        • Instruments of Monetary Policy: Types and Uses
        • Fiscal Policy: Meaning, Objectives and Types
        • Instruments of Fiscal Policy: Types and Uses
      • Consumption function
        • Absolute Income Hypothesis
        • Permanent Income Hypothesis
        • Relative Income Hypothesis
        • Life-cycle hypothesis: Ando and Modigliani
      • Investment
        • Accelerator Theory and its Process
        • Tobin’s Q Theory of Investment
    • Development Economics
      • Basic Ideas and Theories
        • Basic Theories
          • Low-Level Equilibrium Trap: Nelson
          • Three Core Values of Development
          • Vicious Circle of Poverty
          • Kuznets’ Inverted-U Hypothesis
          • Trickle-Down Economics
          • Dependency Theory of Development
          • Brain Drain
        • Gender Development Index: GDI
        • Gender Inequality Index: GII
        • Importance of Sustainable Development
        • Economic Imperialism: Causes & Consequences
        • Inclusive Development: Meaning and Features
        • Infrastructure Development: Need and Importance for Growth
        • Globalization: Advantages and Disadvantages
      • Structural Change
        • Lewis Model of Structural Change
        • Fei and Ranis Model of Structural Change
        • Rostow’s Stages of Economic Growth
    • Indian Economy
      • Policies and Acts
        • New Economic Policy of 1991
        • Nationalisation of Banks in India
        • Planning in India: The Five-Year Plans
        • Demonetisation in India: Consequences
        • Competition Act 2002
        • MRTP Act 1969
        • FRBM Act 2003
        • SEBI Act 1992
      • Foreign Direct Investment in India
      • Green Revolution in India
      • Consumer Price Index in India (CPI): Role and Significance
      • Father of Green Revolution: M.S. Swaminathan
    • International Economics
      • Basic Terms
        • Foreign Direct Investment (FDI): Meaning and Importance
        • Multinational Corporations or MNCs: Role and Importance
        • Special Economic Zones or SEZs: Meaning and Types
        • Industrial Parks
        • Free Trade Zones or FTZs
        • Export Processing Zones or EPZs
      • Ideas and Theories
        • Mercantilism: Meaning, History and Examples
        • Absolute Advantage Theory of International Trade
        • Comparative Advantage Theory of International Trade
    • Statistics
      • Distributions
        • Normal Distribution
        • t-Distribution
        • F-distribution
        • Chi-square Distribution
        • Bernoulli Distribution
        • Binomial Distribution
        • Poisson Distribution
      • Sampling Methods
        • Sampling Methods: Overview
        • Probability Sampling Methods
          • Simple Random Sampling
          • Stratified Sampling
          • Cluster Sampling
          • Systematic Sampling
        • Non-Probability Sampling Methods
          • Purposive Sampling
          • Convenience Sampling
          • Quota Sampling
          • Snowball Sampling
      • Mann Whitney U Test: Wilcoxon Rank Sum Test
      • Kolmogorov Smirnov Test: KS Test
      • Shapiro Wilk Test for Normality
    • Famous Economists
      • Adam Smith: Father of Economics
      • David Ricardo: Contributions and Legacy
      • Alfred Marshall: Contributions to Economics
  • My Account
  • Schedule now!
  • Video Tutorials
    • Fixed and Random Effects Models
    • ARIMA And SARIMA Models
    • VECM: Video Tutorial Series
    • VAR Model and Impulse Response Functions (IRFs)
    • 3SLS Video Tutorial Series
    • 2SLS Video Tutorial Series
    • Bundle: 2SLS and 3SLS
    • Logit and Probit Model
    • Heteroscedasticity, Autocorrelation and Multicollinearity: Basics

Three-stage Least Squares

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    3SLS Video Tutorial Series

    Viren Rehal Viren Rehal

    Difficulty: Advanced

    Number of lessons: 5

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© Copyright 2022-2025 Viren Singh Rehal
SPUR ECONOMICS
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