The geometric distributed lag model is y+= a+y(zt+pz-1+p²z+2+...)+ut for t=1.2..... where lpl<1 and the error term ut satisfies E(utzt.Zt-1)=0. Select all of the following statements that are correct. If {ut) is not an AR(1) process, we can use yt-2 as an instrument and apply 2SLS estimation and obtain consistent estimates. b. If (ut) is an AR(1) process, then we can use the OLS and obtain consistent estimates. c. If {ut) is not an AR(1) process, we can use yt-1 as an instrument and apply 2SLS estimation and obtain consistent estimates. we can use OLS and obtain consistent estimates in any case. d.
The geometric distributed lag model is y+= a+y(zt+pz-1+p²z+2+...)+ut for t=1.2..... where lpl<1 and the error term ut satisfies E(utzt.Zt-1)=0. Select all of the following statements that are correct. If {ut) is not an AR(1) process, we can use yt-2 as an instrument and apply 2SLS estimation and obtain consistent estimates. b. If (ut) is an AR(1) process, then we can use the OLS and obtain consistent estimates. c. If {ut) is not an AR(1) process, we can use yt-1 as an instrument and apply 2SLS estimation and obtain consistent estimates. we can use OLS and obtain consistent estimates in any case. d.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![The geometric distributed lag model is y+= x+y(z₁+pzt-1+p²z₁-2+...) + ut, for t=1,2,... where [p]<1 and the error term ut satisfies E(utlZt Zt-1...)=0. Select all of the following statements that are correct.
a. If {ut) is not an AR(1) process, we can use yt-2 as an instrument and apply 2SLS estimation and obtain consistent estimates.
Ob. If {ut) is an AR(1) process, then we can use the OLS and obtain consistent estimates.
O c. If {ut) is not an AR(1) process, we can use yt-1 as an instrument and apply 2SLS estimation and obtain consistent estimates.
Od. we can use OLS and obtain consistent estimates in any case.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F746539cd-d690-4ce8-b404-c7d81b15d60b%2Fab2ef46a-75d6-4b91-85fb-e3af3c08556e%2Fz2dfv9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The geometric distributed lag model is y+= x+y(z₁+pzt-1+p²z₁-2+...) + ut, for t=1,2,... where [p]<1 and the error term ut satisfies E(utlZt Zt-1...)=0. Select all of the following statements that are correct.
a. If {ut) is not an AR(1) process, we can use yt-2 as an instrument and apply 2SLS estimation and obtain consistent estimates.
Ob. If {ut) is an AR(1) process, then we can use the OLS and obtain consistent estimates.
O c. If {ut) is not an AR(1) process, we can use yt-1 as an instrument and apply 2SLS estimation and obtain consistent estimates.
Od. we can use OLS and obtain consistent estimates in any case.
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