... 20, 2004 Applied Econometrics Outliers, Leverage and Influence References Bao, Nguyen Hoang (1995), ‘Applied Econometrics’, Lecture notes and Readings, Vietnam-Netherlands Project for MA Program ... Classical and Modern Regression with Application, Second Edition, Boston, M.A: PWS – Kent Written by Nguyen Hoang Bao May 20, 2004 Applied Econometrics Outliers, Leverage and Influence Workshop 3: Outliers, ... (Xi − X ) hi = + n n ∑ (Xi − X ) Bounded by 1/n (no leverage) and (extremely Leverage leverage); values above 0.5 indicate excessive leverage and values over 0.2 indicate the observation may give...