Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Let {(yi* ; xi); 1 ≤ i ≤ n} be an i.i.d sequence of random variables where yi* and xi satisfy the linear relationship
yi* = β0 + β1xi + ∈i
with Cov(xi; ∈i) = 0. Now, suppose there is measurement error in yi* ; that is, suppose yi* is unobserved and instead we observe
yi = yi*+ ui;
where ui is independent of both xi and ∈i.
(a) Will running a regression of yi on xi produce a consistent estimator of the slope parameter β1? Justify your answer.
(b) What impact does measurement error have on the precision of the least squares estimator of the slope parameter? Hint: Compare the conditional variance for the OLS estimator from part (a) to that obtained under no measurement error (i.e. when we observe yi*).
What are the economies and diseconomics of scale?
Comparison of sameulson revealed preference theory with the Hicksian revealed preference theoru
1. Suppose we observe that the price of soyabeans goes up while the quantity of soyabeans sold goes up as well. Use the supply and demand curves to illustrate two possible explanat
In the diagrams related to bandwagon effect, why do we say when the price is 30$ the demand is 40?
marginal conditions of pareto efficeincy
Utility-Expenditure Duality: Consider the minimisation of the expenditures necessary to achieve a specified utility level. The solution for qi yields the compensated demand f
Explain how monetary and fiscal policies can be used to alleviate (= lessen) dissimilar types of inflation. Define monetary and fiscal policies and show how these policies mig
What are the possibilities of returns to scale in production technology? Three possibilities are there as: technology exhibits (a) constant returns to scale; (b) decreasing ret
Determine the Returns to Scale Use the following production function and budget constraint to answer the questions below. Q = L + K 1000 = 2L +
INTERNATIONAL DEVELOPMENT ASSOCIATION: International Development Association (IDA) is an affiliate of the IBRD. It was established in 1960 to provide "soft loans" to economica
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd