Question: In Example 11.6, we estimated a finite DL model in first differences: (g/rt = (0 + (0(pet + (1(pet-1 + 82(pett-2 + ut. Use the
(g/rt = (0 + (0(pet + (1(pet-1 + 82(pett-2 + ut.
Use the data in FERTIL3.RAW to test whether there is AR(1) serial correlation in the errors.
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Regressing on using the 69 available observations gives 292 and se ... View full answer
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