Professor Ragnar Frisch by University of Oslo, always had many variables and parameters for making the right conclusions in Economics by using Econometrics. And this is a funny and an exciting journey, and we can use insights from these courses to explain the content and the structures we find in different models, and finding new ways of understanding what we know through the numbers.
Regression analysis and factor analysis are much used in Economics, and regression analysis means to explain dependent variable and independent variables about what is happening, and how things can be explored and explained. And we can have one dependent varaible and one independent variable, or we can have several of them. And factor analysis we are used to explain patterns with data, and to get explorations or confirmed analysis by using the data.
The BLUE-estimator is having the right properties to get Best Linear Unbiased Estimator, and that is the logic we are using and thinking about in regression analysis. And that is to follow our wishes and expectations about relations between variables, and having the right quantity on skewness and kurtosis. And many civil economists cannot all these things, since they have not enough years of education and research to understand what is going on. And in every course in Multivariate data analysis and Statistics, we are using inferences, for instance rational Bayesian approaches, for doing analysis and explanations from the sample to the population. And we cannot to any time be sure of all our conclusions, and that they are valid, but we need enough data with the use of theories and methods to explain patterns. And no school or research institution should not at any time make any decisions about us, since we should operate alone and independently with all these people having long education, and many of them know what to do, and they are conscious about their choices and what the education is doing with you to frame your brain in such ways that we need compentece and analysis and creativity of any kinds, of all the kinds that are in nature, to do properly investigations. And Economics is much about treating figures, and explaining what is happening, and Econometrics is Statistics in Economics that we are using to measure and to explain the uncertainty that we often meeet in statements and in data we have collected and captured.
In Econometrica, we often find variants of something that has happened in regression analysis and in factor analysis when coming to theories, methods and data. And the main issue that we are using in the numbers that we have, is to get new insights and explanations about what is really the situations that we are experienced just now, and we can use such things for explaining demand and supply, and for determining the prices and the quantity. And some people believe in easy ways of understanding, but the business schools and the universities are doing us skeptical to what we know, and how we know it. The more we know, the less we know for sure.
The idea of using regression analysis and factor analysis of different kinds, can not just be used in Economics, but we can use in the Social Sciences, and in many – probably all – disciplines of all the sciences that exist. Be skeptical to what is saying and writing from different angles, also on TV, and try to find the context of discovery and context of justification about what is described and explained, and use the different kinds of validity research to evaluate what we have found.
Professor Ragnar Frisch was dominating in making the definition in Macro Economics and in Micro Economics when explaining Economics. And he is probably the only Norwegian scientist that has been in the Editorial Board in Econometrica for a long time, between 20 years and 30 years. The most basics of economic research is that there are alternatives there, and that there is scarcity of resources - and human assets and capital assets. If there is an abundance of things, we do not need economists, and therefore we just need economists when we are calculating things and doing assessments of what is the new insights, and which implications these have for the further understanding.
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