NCRM videos

DGP and Likelihood

Andrei Zhirnov

19-10-2021

In this video, Andrei Zhirnov looks at two concepts that are critical for understanding how we can connect data with the model and the model parameters. The first is data generating process, which is a model that describes how our data could have been generated. The second is the likelihood function, the probability that we could observe the data set that we actually observed, given the variance of the parameters.