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The Association between Income and Consumption

Summary:
{bit.ly/dsia07c} Lecture 7 examines methods of establishing association, or lack of it, between two variables. This part C shows how we establish the strong relationship between consumptions and incomes using the World Bank WDI panel data set of 132 countries over 60 years. We examine the same problem in isolation for a single country, and ...

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{bit.ly/dsia07c} Lecture 7 examines methods of establishing association, or lack of it, between two variables. This part C shows how we establish the strong relationship between consumptions and incomes using the World Bank WDI panel data set of 132 countries over 60 years. We examine the same problem in isolation for a single country, and explain why most methods fail in this situation because of common time trends.


Asad Zaman
Physician executive. All opinions are my personal. It is okay for me to be confused as I’m learning every day. Judge me and be confused as well.

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