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A method of selecting independent variables in an econometric model known as the method of capacity of information bearers (the Hellwig method) is a very simple concept. Unfortunately, its computational complexity grows exponentially along with the number of potential independent variables what can make the method practically unusable unless appropriate software is used. However, formulas used in the method, at least in the form most often presented in literature are not “uniform” and that is why their literal implementation into computer software may encounter remarkable difficulties. In particular, spreadsheets, despite a large number of built-in statistical features, are apparently not a good tool for some calculations in the field, including those required by the Hellwig method. This paper shows a simple transformation of the formulas used in the Hellwig
method which makes an implementation of the method in spreadsheets very easy. It is compatible with most popular spreadsheet programs (both commercial and free) and appropriate for both educational purposes and analysis of real-world econometric models. The implementation was illustrated with a simple example with real-world data.
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