(Stata16): Heteroskedasticity and Weighted (Generalised) Least Squares

[@CrunchEconometrix]

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[@emilianomatiasmoreno2651]

I struggled with this subject along the semester and founding this video just left everything clear in 10 minutes. Thanks for taking the time to upload it!!!

[@CrunchEconometrix]

Great to hear, Emiliano!

[@ismatjahan644]

@CrunchEconometrix, Thank you maa'm....it helpedme a lot

[@CrunchEconometrix]

Glad to hear, Ismat😊

[@moviesanddramakorea]

Thanks for this Ma. I want to understand something. Changing the variables into a log form to correct Heteroskedasticity is that what GLS is all about? I understood the correction of Heteroskedasticity using the functional form as you taught. This particular one does it mean that when you change the cariables to a log form and you run the regression again, then check for heteroskedasticity, it is corrected and thus meaning GLS?

[@CrunchEconometrix]

Hi Kezia, thanks for the positive feedback. The video description says it all. Answers your query.

[@farwakhalid4041]

Hello once again, can you please how to add the weight variable? Because if I am simply putting (weight/1/myIV) then Stata is giving an error. Can you please elaborate? I would be highly grateful. Thanks in advance.

[@CrunchEconometrix]

Hi Fawa, why not follow the steps shown?

[@ahyz5759]

Hi, Is there any rule to select the Z known variable, independent variable? Or i can choose it randomly?

[@CrunchEconometrix]

Hi, kindly watch the clip again. Thanks.

[@fahimmukhtar8349]

teacher how it is known that sqfeet is causing heteroscedasticity?

[@CrunchEconometrix]

Hi Fahim, I explained how to detect heteroscedasticity so kindly watch the videos again.

[@kingsleygyan810]

@crunchEconometrix In correcting for heteroskedasticity in RE model ... which is the best estimator ? Robustness of RE or FGLS

[@CrunchEconometrix]

Hi Kingsley, either approach works well insofar the heteroskedasticity is eliminated.

[@kingsleygyan810]

@@CrunchEconometrix thanks soo much