Review Conditional pdf Let(Y1,., YN) have joint pdf f(31,.. JN). Let f(3J+1, .. yN)be the marginal pdf of(y+1,……,YN). The conditional pdf of y1,…, Y, given y+1,…, YN is defined by
Chapter 5 Large sample properties of the LSE 5.1 Stochastic convergence Suppose that Xn} is a sequence of random varia bles with a corresponding sequence of distribution functions{Fn} If Fn(x)(x) at every continuity point x of F, Fn is said to converge weakly to F, written FnF. In this case,{xn} is said to converge in distribution to where
Chapter 3 Least Squares Methods for Estimating B Methods for estimat ing B Least squares estimation Maximum like lihood estimation Met hod of moments est imation Least a bsolute deviat ion est imation
Chapter 1 Introduction 1.1 What is econometrics? Application of st atistical and mathematical met hods to the analysis of economic Purposes 1. Testing economic theories 2. Policy analysis(simultaneous equations model, vector autoregressive model
1. Producer Theory 1. Technology yi =input of good i, y =output of good i, i= yi-yi=net output, y yn) is a production plan Production possibility set Y=technologically feasible production plans yE Rn) y E Y is technologically efficient if there is no yE Y s.t. y>y