If we think that (1 is positive in (13.14) and that (ui. and (unemi are negatively correlated,

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If we think that (1 is positive in (13.14) and that (ui. and (unemi are negatively correlated, what is the bias in the OLS estimator of (1, in the first-differenced equation? [Review equation (5.4).]

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Introductory Econometrics A Modern Approach

ISBN: 978-0324660548

4th edition

Authors: Jeffrey M. Wooldridge

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Question Posted: Apr 21, 2016 04:57 AM

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If we think that (1 is positive in (13.14) and that (ui. and (unemi are negatively correlated,

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The sign of b 1 does not affect the direction of bias in the OLS estimator of ...View the full answer

Introductory Econometrics A Modern Approach

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