Question: (i) In the enterprise zone event study in Computer Exercise CI0.5, a regression of the OLS residuals on the lagged residuals produces-= .841 and se()

(i) In the enterprise zone event study in Computer Exercise CI0.5, a regression of the OLS residuals on the lagged residuals produces-= .841 and se() = .053. What implications does this have for OLS?
(ii) If you want to use OLS but also want to obtain a valid standard error for the EZ coefficient, what would you do?

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i There is substantial serial correlation in the errors of the equation and the OLS standar... View full answer

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