Summary: ICPSR Regression I (June 23 ~ July 18, 2008)

Mon, 07/21/2008 - 14:01 — Daniel Zhou

This ICPSR summer course was taught by Sandy Schneider from MSU. The focus of the course was to help students learn how to use the Regression Model to 1) describe, 2) explain, and 3) predict real problems. The textbook I used was Basic Econometrics, 4th Edition, by Gujarati.

Just as many former students said before, this was not a difficult course, and we can even say it was an easy one. However, through the course we built up very solid fundamental understanding of the Regression model, and we learned how to use Stata and solve real research problems. We can apply what we learned immediately to our own research! Compare to ECON 671 Econometrics I, I would prefer the ICPSR course. ECON 671 spent too much time on technical details. It would take 3 classes just to prove x-hat is the Best Linear Unbiased Estimator, which I think we only need 10 minutes to understand the concept and the conclusion. Frankly, ECON 671 didn't teach me much about applying Regression to research. So, I would recommend ICPSR Regression I to those who want immediate application.

Here are the things we learned from the course:

The interpretation of regression coefficients and the p-values.
Assumptions required for regression models
Goodness of fit, residues, R-square, adjust R-square, Pearson's r
Multiple regression. Model specification. How to compare different models. How to decide whether to include/omit a variable.
Standardized form of coefficient, the beta value in Stata report
Dummy variables. We need to omit one category as the reference point.
Residue plot
Muticollinearity (VIF>10)
Outliers (dfits - the big the value, the more influential)
Some examples of non-linear regression models.

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