<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>It is important to be aware that economic occurrences depend also on subjective (psychological and sociological) factors. In many cases these causes could be identified with propensities. Propensities could be understood as a generalized psychological and sociological causes that make probabilities of certain events higher in given objective circumstances. In the article proposition of determining impact of propensities on economic phenomena by means of residuals of econometric models for spatial data was discussed. Econometric consequences of omitting subjective factors (propensities) while analyzing socio-economic regularities were presented. Such kind of residuals as OLS, predictive, studentized, recursive and BLUS residuals were described. Econometric properties of mentioned residuals were also pointed out. In the empirical example all types of residuals were used to analyze impact of propensity to consume in chosen European countries in 2006.</p></abstract>

It is important to be aware that economic occurrences depend also on subjective (psychological and sociological) factors. In many cases these causes could be identified with propensities. Propensities could be understood as a generalized psychological and sociological causes that make probabilities of certain events higher in given objective circumstances. In the article proposition of determining impact of propensities on economic phenomena by means of residuals of econometric models for spatial data was discussed. Econometric consequences of omitting subjective factors (propensities) while analyzing socio-economic regularities were presented. Such kind of residuals as OLS, predictive, studentized, recursive and BLUS residuals were described. Econometric properties of mentioned residuals were also pointed out. In the empirical example all types of residuals were used to analyze impact of propensity to consume in chosen European countries in 2006.

Determination of Impact of Propensities by Means of Residuals of Econometric Models for Spatial Data

Department of Econometrics and Statistics, Faculty of Economics and Management, University of Szczecin, Mickiewicza 64, 71-101 Szczecin

Folia Oeconomica Stetinensia

It is important to be aware that economic occurrences depend also on subjective (psychological and sociological) factors. In many cases these causes could be...

Determination of Impact of Propensities by Means of Residuals of Econometric Models for Spatial Data

Published Online: Oct 14, 2010

Page range: 49 - 56

DOI: https://doi.org/10.2478/v10031-009-0023-5

Keywords
propensities, propensity to consumption, residuals of econometric models, OLS residuals, predictive residuals, studentized residuals, recursive residuals, BLUS residuals

This content is open access.

Determination of Impact of Propensities by Means of Residuals of Econometric Models for Spatial Data

Published Online: Oct 14, 2010

Page range: 49 - 56

DOI: https://doi.org/10.2478/v10031-009-0023-5

Keywordspropensities, propensity to consumption, residuals of econometric models, OLS residuals, predictive residuals, studentized residuals, recursive residuals, BLUS residuals

This content is open access.

Keywords
propensities, propensity to consumption, residuals of econometric models, OLS residuals, predictive residuals, studentized residuals, recursive residuals, BLUS residuals