Econometric mode
Gretl – a statistical package
1. Write the variable y after the estimation
2. Check the statistical significance of every variable X_i.
3. Check the coefficient of determination – percentage of the explained variation
4. remove of non significant variables
5. Estimate the model again without non significant variables
6. compare the models (with and without non significant variables): corrected coefficient of
determination and information criteria
the higher corrected coefficient of determination the better model is.
the lower information criteria the better model is.
Econometric model
Gretl – a statistical package
How to check model in gretl?
1. Write the variable y after the estimation
2. Check the statistical significance of every variable X_i.
3. Check the coefficient of determination – percentage of the explained variation
4. remove of non significant variables
5. Estimate the model again without non significant variables
6. compare the models (with and without non significant variables): corrected coefficient of
determination and information criteria
the higher corrected coefficient of determination the better model is.
the lower information criteria the better model is.
