Master 2-Stage Least Squares Without Any Mathematics

What you'll learn
Understand the endogeneity bias
Understand how the 2-Stage Least Squares model can mitigate the endogeneity bias
Identify potential instrumental variables for the 2-Stage Least Squares model
Understand the mechanics of the Durbin Wu-Hausman Test for endogeneity
Understand how to test for the strength and validity of instrumental variables
Estimate the 2-Stage Least Squares model in Stata and EViews
Conduct the diagnostic tests of the 2-Stage Least Squares model in Stata and EViews
Excel in their formal learning of the 2-Stage Least Squares model by building upon what is learnt in this course
Requirements
Basic knowledge of Regression Analysis
Basic understanding of P-Values in Hypothesis Testing
Description
Welcome to my on 2-Stage Least Squares (2SLS). This course is carefully designed for students/researchers who are learning 2SLS for the first time and who are not quantitatively inclined. In fact, this course is entirely NON-MATHEMATICAL! This course is perfect for learning the intuition and logic of 2SLS and its corresponding diagnostic tests before formally learning the derivation and mathematics from an econometrics course or textbook. Moreover, this course covers the application of 2SLS and its diagnostic tests using two of the most popular econometrics software packages, Stata and EViews. At the end of this course, the student will have a clear understanding of why 2SLS is used and how it is implemented, and be able to estimate a 2SLS model using empirical data.
Overview
Section 1: The Non-Mathematical Theory of 2-Stage Least Squares
Lecture 1 Introduction to Section 1
Lecture 2 Correlation vs Causation
Lecture 3 The Assumption of Strict Exogeneity
Lecture 4 The Endogeneity Bias
Lecture 5 The Fix: An Instrumental Variable
Lecture 6 Introducing the 2-Stage Least Squares Model
Lecture 7 Hunting for an Instrument for Wages and Education
Lecture 8 Testing the Strength of the Instrumental Variable
Lecture 9 Testing the Validity of the Instrumental Variable
Lecture 10 Testing for Endogeneity
Section 2: Applying 2-Stage Least Squares in Stata
Lecture 11 Introduction to Section 2
Lecture 12 Stata: Importing Data
Lecture 13 Stata: Estimating an OLS Regression
Lecture 14 Stata: Estimating the 2-Stage Least Squares Regression
Lecture 15 Stata: Conducting the Diagnostic Tests of the 2SLS Model
Lecture 16 Stata: A Second Example Using Airfares Data
Section 3: Applying 2-Stage Least Squares in EViews
Lecture 17 Introduction to Section 3
Lecture 18 EViews: Importing Data
Lecture 19 EViews: Estimating an OLS Regression
Lecture 20 EViews: Estimating the 2-Stage Least Squares Regression
Lecture 21 EViews: Conducting the Diagnostic Tests of the 2SLS Model
Lecture 22 EViews: A Second Example Using Airfares Data
Section 4: Tips for Learning 2-Stage Least Squares Formally
Lecture 23 The Best Method for Mastering the 2-Stage Least Squares Model
Section 5: Time to Test Your Understanding
Section 6: BONUS SECTION: A Primer on OLS Regressions
Lecture 24 Basic Introduction to OLS Simple Regressions
Lecture 25 Part 1 of the OLS Regressions Refresher
Lecture 26 Part 2 of the OLS Regressions Refresher
Any student or researcher who is learning the 2-Stage Least Squares model for the first time,Students or researchers who are not quantitatively inclined


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