Q: Why should we always run a correlational analysis before fitting an econometric model?
1 Answer to this question
Answer:
Before constructing a model, it is important to identify which variables are relevant and which are random disturbances. Performing a correlational analysis helps identify the relevant variables and their impact. The models themselves may involve correlation coefficients.
For further help, you may also wish to learn about our related service here: Editage Statistical Review
You may also find the following questions (by previous researchers) relevant.
- When can I use correlation analysis as opposed to regression analysis?
- What is the best statistical method for a correlational quantitative research?
Hope that helps. All the best for your study!
Comment
This content belongs to the Conducting Research Stage
Conducting research is the first and most exciting step in a researcher's journey. If you are currently in this stage of your publishing journey, subscribe & learn about best practices to sail through this stage and set yourself up for successful publication.