Question: (i) In the enterprise zone event study in Computer Exercise C5 in Chapter 10, a regression of the OLS residuals on the lagged residuals produces

(i) In the enterprise zone event study in Computer Exercise C5 in Chapter 10, a regression of the OLS residuals on the lagged residuals produces r^ 5 .841 and se1r^ 2 5 .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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