Use the data in FERTIL3 for this exercise. (i) Regress gfr t on t and t 2
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Use the data in FERTIL3 for this exercise.
(i) Regress gfrt on t and t2 and save the residuals. This gives a detrended gfrt, say, gf̈t.
(ii) Regress gf̈t on all of the variables in equation (10.35), including t and t2. Compare the R-squared with that from (10.35). What do you conclude?
(iii) Reestimate equation (10.35) but add t3 to the equation. Is this additional term statistically significant?
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i To regress gfrt on t and t2 and save the residuals the following regression equation should be use...View the full answer
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Related Book For 
Introductory Econometrics A Modern Approach
ISBN: 9781337558860
7th Edition
Authors: Jeffrey Wooldridge
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