For the Phillips curve regression Equation (5.29) given in Chapter 5, the estimated d statistic would be
Question:
a. Is there evidence of first-order autocorrelation in the residuals? If so, is it positive or negative?
b. If there is autocorrelation, estimate the coefficient of autocorrelation from the d statistic.
c. Using this estimate, transform the data given in Table 5-6 and estimate the generalized difference equation (10.15) (i.e., apply OLS to the transformed data).
d. Is there autocorrelation in the regression estimated in part (c)? Which test do you use?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: