Economist how-to
How to Run a Regression for Policy Analysis
Regressions measure relationships.
Quick answer
Regressions measure relationships. In short: define; collect; choose, then complete the remaining steps below.
Step by step
Define the question.
Collect data.
Choose variables.
Run the regression.
Check assumptions.
Interpret carefully.
Safety reminders for economists
- Protect confidential data
- Follow research ethics
- Present findings honestly
- Disclose limitations
Key terms
GDP · Inflation · CPI · Unemployment rate · Monetary policy · Fiscal policy: see the full economist glossary.