12 OLS is not the only line estimation method

Econometrics offers multiple methods for fitting a line to data beyond Ordinary Least Squares (OLS). This video explores why OLS is the standard, examining its mathematical properties like differentiability which allow for closed-form solutions. We'll also contrast it with Least Absolute Deviations (LAD), demonstrating with a simple three-point example how different estimation techniques can yield distinct lines. Understanding these differences is crucial for accurate data analysis and interpretation. Subscribe to @AxiomTutoringCourses.