Statistical and Probabilistic Background

  • Phoebus Dhrymes


Most of the economic relationships that are studied empirically involve more than two variables. For example, the demand for food on the part of a given consumer would depend on the consumer’s income, the price of food, and the prices of other commodities. Similarly, the demand for labor on the part of a firm would depend on anticipated output and relative factor prices. One can give many more such examples. What is common among them is that often the dependence is formulated to be linear in the parameters, leading to the so-called general linear model. Once the parameters of the model are estimated we are interested in the probability characteristics of the estimators. Since we are, typically, dealing with the estimators of more than one parameter simultaneously, it becomes important to develop the apparatus for studying multivariate relationships. This we shall do in the discussion to follow.


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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Phoebus Dhrymes
    • 1
  1. 1.New YorkUSA

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