Question: Use the data in INVEN.RAW for this exercise; see also Computer Exercise CI 1.6. (i) Obtain the OLS residuals from the accelerator model (inventt -

Use the data in INVEN.RAW for this exercise; see also Computer Exercise CI 1.6.
(i) Obtain the OLS residuals from the accelerator model (inventt - (0 + (1(GDPi + ut and use the regression t on t-1 to test fro serial correlation. What is the estimate of (? How big a problem does serial correlation seem to be?
(ii) Estimate the accelerator model by PW, and compare the estimate of (1 to the OLS estimate. Why do you expect them to be similar?

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