A Diagrammatic Exposition of Regression and Instrumental Variables for the Beginning Student
25 Pages Posted: 1 Jun 2008
Date Written: May 2008
Some beginning students of statistics and econometrics have difficulty with traditional algebraic approaches to explaining regression and related techniques. For these students, a simple and intuitive diagrammatic introduction may prove a useful framework to support further study. This paper presents a series of diagrams designed for use in an introductory econometrics course as an intuitive aid when first introducing fundamental concepts of the field. These diagrams are easily employed in the classroom as an enhancement to traditional teaching methods. Pedagogical suggestions and a few applied examples drawing on the diagrammatic framework are motivated and discussed.
JEL Classification: A22, C01
Suggested Citation: Suggested Citation