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Multiple Regression

In: An Introduction to Econometrics

Author

Listed:
  • A. A. Walters

    (London School of Economics)

Abstract

We have examined extensively the case when one variable depends upon one other. In practice, however, one rarely has a theory as simple as this. Normally one can only explain the dependent variable in terms of many variables. The quantity demanded for example may depend not merely on the relative price of the good but also the relative prices of substitutes and complements, and the level of personal disposable income. The theory of demand indicates the signs of the coefficients — negative for its own price and for prices of complements and positive for prices of substitutes and personal income. The obvious way of developing a model to test this hypothesis is to extend the simple regression model.

Suggested Citation

  • A. A. Walters, 1970. "Multiple Regression," Palgrave Macmillan Books, in: An Introduction to Econometrics, edition 0, chapter 5, pages 120-144, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-15277-3_5
    DOI: 10.1007/978-1-349-15277-3_5
    as

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