Book Econometric Analysis of Cross Section and Panel Data By Wooldridge - Chapter 2
Book Econometric Analysis of Cross Section and Panel Data By Wooldridge - Chapter 2
The Role of Conditional Expectations in Econometrics As we suggested in Section 1.1, the conditional expectation plays a crucial role in modern econometric analysis. Although it is not always explicitly stated, the goal of most applied econometric studies is to estimate or test hypotheses about the expectation of one variable—called the explained variable, the dependent variable, the regressand, or the response variable, and usually denoted y—conditional on a set of explanatory variables, indepe
