Question: You estimate the model y = XP + &, whereas the true model is y = XB + XB + a) Under what conditions

You estimate the model y = XP + &, whereas the true

You estimate the model y = XP + &, whereas the true model is y = XB + XB + a) Under what conditions is the OLS estimator for B, unbiased? b) Assuming in the true model: plim Under what conditions is the OLS estimator for B consistent? c) Suppose that an extremely large dataset for wages and schooling exists. Do you think the estimator presented would yield an unbiased and consistent estimate of the return to education?

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