Question: For the Phillips curve regression Equation (5.29) given in Chapter 5, the estimated d statistic would be 0.6394. a. Is there evidence of first-order autocorrelation

For the Phillips curve regression Equation (5.29) given in Chapter 5, the estimated d statistic would be 0.6394.
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?

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a b c d The estimated d value is 06394 The 5 critical d values are 0971 and 1331 Since 063... View full answer

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