Econometrics pp 187-233 | Cite as

Regression Diagnostics and Specification Tests

  • Badi H. Baltagi

Abstract

Sources of influential observations include: (i) improperly recorded data, (ii) observational errors in the data, (iii) misspecification and (iv) outlying data points that are legitimate and contain valuable information which improve the efficiency of the estimation. It is constructive to isolate extreme points and to determine the extent to which the parameter estimates depend upon these desirable data.

Keywords

Covariance Income Resid Gasoline 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Badi H. Baltagi
    • 1
  1. 1.Department of EconomicsTexas A&M UniversityCollege StationUSA

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