Least-Squares Analysis of Economic Survey Data

Presented at the annual meeting of the American Statistical Association, Philadelphia, Pennsylvania,

September 11, 1965. Published in
*1965 Proceedings of the Business and Economic Statistics Section,*American Statistical Association,
pp. 373-385

This is my most requested paper, by researchers in many fields and countries.In contrast to trying to identify and report relationships via cross-classifying data in probably no more than 3-way tables, multiple regression handles many more variables in one analysis, quantifies their relationships (b-coefficients), measures their joint and individual importance (R-square and partial R-square) and indicates the reliability of their influence (F and t ratios).

The paper shows how properly to use 0,1 independent (explanatory) variables in multiple regression programs, and how best to interpret and report the results.

Factors Affecting Economists' Salaries: A Regression Analysis
February 1966, 50 pp.

This unpublished paper presents the "behind-the-scenes" work involved in using the regression technique of the ASA paper to obtain the analysis presented in the 1965 AER paper below.First, tables, graphs, and scatter diagrams were obtained to reveal the problems involved in trying to determine how the seven surveyed characteristics influenced the salaries of 9,981 economists. Important interactions among these explanatory characteristics had to be identified and, if feasible, represented in the regression equation, as otherwise the results would be misleading at best. This search for interactions, described on pages 7-14, uses the Appendix charts on pages 31-50. After a final regression equation was chosen and estimated, the salaries computed from the equation were charted, tabulated, and compared with actual salaries to provide an indication of the validity of the analysis.

The article listed below is the published result of this investigation:

The Net Influence on Economists' Salaries of Each of Seven
Characteristics: A Regression Analysis,

* American Economic Review,*
December 1965, Part 2, Supplement, pp. 63-70

**
The following papers also use the techniques described above:
**

Study II and
Study III-A in
Studies of the Structure of Economists' Salaries and Incomes,* AER,* Dec. 1968

Characteristics and Salaries of Agricultural Economists
* AJAE,* November 1969

Factors Related to Farmers' Use of Credit
*Journal of Farm Economics,* December 1965

Analysis of Variation in the Use of Merchant-Dealer Credit Federal Reserve Board, 1966, Chapter VII, pp. 53-70

Analyses of Farm Real Estate Debt Unpublished, May 1965

Seasonal Borrowing at the Federal Reserve Discount Window
*Agricultural Finance Review*, Oct. 1974

The Federal Reserve Seasonal Borrowing Privilege Symposium, F.R.Bank of Kansas City, 1980