Give an intuitive explanation of why correlation between a random (x) and the error term causes the
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Give an intuitive explanation of why correlation between a random \(x\) and the error term causes the least squares estimator to be inconsistent.
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When there is a correlation between a random explanatory variable x and the error term in a regression model it leads to endogeneity which can cause t...View the full answer
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Related Book For 
Principles Of Econometrics
ISBN: 9781118452271
5th Edition
Authors: R Carter Hill, William E Griffiths, Guay C Lim
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