The McGraw-Hill Series Economics essentials of economics brue, McConnell, and Flynn Essentials of Economics

P
th-order autoregressive (AR(
p
)), 776
Purchasing power parity (PPP), 139
Pure autocorrelation, 440–442
Pure random walk, 745
Purely random process, 741
Q
Q
statistic, 753–754
Q
th-order moving average (MA(
q
)), 776
Quadratic function, 210
Qualitative response models, 541–581
duration models, 580–581
linear probability model, 543–553
logit model, 553–566, 589–590
multinomial models, 580
nature of, 541–543
ordinal models, 580
Poisson regression model, 576–579
probit model, 566–571, 589–590
selection of model, 571–573
tobit model, 574–577
unit change in value of regressor in, 571
Qualitative variables, 14
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Subject Index
919
Quality, of data, 27
Quarterly data, 22
Quasi-difference equation, 442
Quinquennial data, 22
R
R
2
criterion, 493
Ramsey’s RESET test, 479–481
Random (term), 21
Random effects estimators, 606
Random effects model (REM), 602–607
Random interval, 108
Random regressor case, 510, 511
Random sample, 823
Random (stochastic) variable, 4, 19
Random variables, 803
Random walk model (RWM), 741–746
Random walk phenomenon, 737
Random walk time series, 751
Randomness, 41
Rank condition of identifiability, 700–703
Rank of matrix, 845–846
Rare event data, 542
Ratio scale, 28
Ratio transformation, 345
Rational expectations (RE) hypothesis, 631
Raw 
r
2
, 150
RE (rational expectations) hypothesis, 631
Real consumption function, 505–509
Realization of possibilities, 740
Real-time quote, 22
Real-valued function, 802n
Reciprocal models, 166–172
Recursive least squares (RELS), 498
Recursive models, 712–714
Recursive residual test, 259
Recursive residuals, 498
Reduced-form coefficients, 690, 691
Reduced-form equations, 690, 691
Reduction, of determinant, 844
Reduction formula, 869
Reference category, 281
Region of acceptance, 116
Region of rejection, 116, 833
Regressand, 21
Regression:
historical origin of term, 15
through the origin, 147–153
on standardized variables, 157–159
Regression analysis, 15–21, 124–136
and analysis of variance, 124–126
and causation, 19–20
and correlation, 20
data for, 22–28
defined, 15
for estimation, 5
evaluating results of, 130–134
examples of, 16–18
measurement scales of variables, 27–28
prediction problem, 126–129
reporting results of, 129–130
statistical vs. deterministic relationships
in, 19
terminology/notation used in, 21
Regression coefficients, 37, 246–248
Regression fishing, 475
Regression line, 16
Regression model(s), 159
Box–Cox, 187
elasticity measurement, 159–162
growth measurement, 162–166
log-linear model, 159–162
reciprocal models, 166–172
selection, 172–173
semilog models, 162–166
and stochastic error, 174–175
Regression software, 11–12
“Regression to mediocrity,” 15
Regression using standardized variables, 873
Regressor, 21
Rejecting hypothesis, 119
Relative (proportional) change, 160n
Relative frequency, 557, 802
Relevant variable, omission of, 469, 
471–473
RELS (recursive least squares), 498
REM (
see
Random effects model)
Repeated sampling, 84
Replicated data, 556–558
Reproductive property, 143
Residual sum of squares (RSS), 70, 75
Residuals, 44, 445–446, 477
Resources for Economists on the 
Internet, 900
Restricted 
F
test, 598, 758
Restricted least squares (RLS), 
249–252, 481
Restricted residual sum of squares (RSS
R
),
256–258
Ridge regression, 346
RLS (
see
Restricted least squares)
Robust estimation, 318n
Robust standard errors, 391, 411
Row by column rule of multiplication, 841
Row vector, 839
RSS (