Question: The model is Y Xe with E[e j X] 0 and X 2 R. Consider the two estimators (a) Under the stated assumptions

The model is Y Æ X¯Åe with E[e j X] Æ 0 and X 2 R. Consider the two estimatorsB= B= Xi Yi 1 Yi n Y Xi

(a) Under the stated assumptions are both estimators consistent for ¯?

(b) Are there conditions under which either estimator is efficient?

B= B= Xi Yi 1 Yi n Y Xi

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