1 Introduction Fama[1970] says a market in which prices always ”fully reflect” available information is called ”efficient”, that is, successive price changes (or more usually, successive one-period returns) are independent. In other words, if the flow ...
Econometrics Theory 1 Linear Regression Model 1.1 Basics and estimation Let us conside a simple linear regression model below. yt= b1+ b2xt+ ut; for t= 1;;n This function is mapping fromxt toyt, that is,xt ! yt. Here we call each variables,yt as explained vari...