Suppose that the model of Exercise 4 were specified as B + yL Yi = a +

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Suppose that the model of Exercise 4 were specified as

B + yL Yi = a + 1- 81 L– & L2* + e.. 1- 81 L– 82 L2

Describe a method of estimating the parameters, is ordinary least squares consistent?

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Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

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Question Posted: Nov 11, 2010 02:51 AM

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Suppose that the model of Exercise 4 were specified as B + yL Yi = a +

Question:

B + yL Yi = a + 1- 81 L– & L2* + e.. 1- 81 L– 82 L2"

Step by Step Answer:

By multiplying through by the denominator of the lag function we obtain a...View the full answer

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