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OpenBB/website/content/sdk/reference/econometrics/fdols.md
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---------

Co-authored-by: jose-donato <zmcdonato@gmail.com>
Co-authored-by: jose-donato <43375532+jose-donato@users.noreply.github.com>
Co-authored-by: andrewkenreich <andrew.kenreich@gmail.com>
2023-10-30 21:01:29 +00:00

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title, description, keywords
title description keywords
fdols This documentation page provides information on First Differencing (fdols) - an alternative to using fixed effects when there is possible correlation. It contains the source code link, explanation of parameters and return details.
First Differencing
fdols
Fixed effects
Dependent variable
Independent variable
Regression variables
OLS model

import HeadTitle from '@site/src/components/General/HeadTitle.tsx';

First differencing is an alternative to using fixed effects when there might be correlation.

Source Code: [link]

openbb.econometrics.fdols(Y: pd.DataFrame, X: pd.DataFrame)

Parameters

Name Type Description Default Optional
regression_variables list The regressions variables entered where the first variable is
the dependent variable.		 None True
data dict A dictionary containing the datasets. None True

Returns

Type Description
Tuple[DataFrame, Any, List[Any], Any] The dataset used,
Dependent variable,
Independent variable,
First Difference OLS model