Part 5 | Multivariate GLM

// modeling more complex relationships //

Part 5 tackles the messy reality of economic data: relationships that vary across groups, effects that depend on context, and unobserved factors that confound your analysis. You'll learn advanced techniques like numerical controls, categorical controls, interactions, and model selection that let you handle these complexities systematically. These tools are essential for answering sophisticated economic questions, like whether minimum wage effects differ across regions, or how monetary policy impacts vary over business cycles.

Part 5.1 ~ Categorical Controls

Use fixed effects to control for unobserved group differences. Interpret coefficients in models with multiple categorical predictors.

Concept 5.1 // Numerical Controls

Models of multiple intercepts

Exercise 5.1 // Gender Wage Gap (v1)

Testing whether wages are different by gender

Homework 5.1 // Categorical Controls

Due on Friday November 21 at 5PM on Gradescope.

Assignment Notebook

Part 5.2 ~ Numerical Controls

Control for related variables.

Concept 5.2 // Numerical Controls

Exercise 5.2 // Gender Wage Gap (v2)

Controling for age.

Homework 5.2 // Numerical Controls

Due on Friday, November 21 at 5PM on Gradescope.

Part 5.3 ~ Interactions

Part 5.3 // Interactions

Exercise 5.3 // Gender Wage Gap (v3)

Is the returns to education different by gender?

Homework 5.3 // Interactions

Due on Friday at 5PM on Gradescope.

Part 5.4 ~ Model Selection

Check model assumptions using diagnostic plots and statistical tests. Handle autocorrelation and heteroskedasticity in regression models.

Concept 5.4 // Model Selection

Constructing the right model

Exercise 5.4 // Model Selection

Interactive examples of appropriate modeling

Homework 5.4 // Model Selection

Due on Friday at 5PM on Gradescope.

MiniExams

MiniExam 5 will be held on Thursday December 4 and will cover everything in Part 5: numberical controls, categorical controls, interactions, and model selection.

MiniExam 5

Try solving the demo then check your answers against the video.