Question: Suppose that the model of Exercise 4 were specified as B + yL Yi = a + 1- 81 L & L2* + e.. 1-

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?



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

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