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Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
Edition 3ISBN: 978-9352863501Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
Edition 3ISBN: 978-9352863501 Exercise 14
Consider the regression model Y i = ß 0 + ß 1 X 1i + ß 2 X 2i + u r Use Approach #2 from Section 7.3 to transform the regression so that you can use a t-statistic to test
a. ß 1 = ß 2;
b. ß 1 + aß 2 = 0, where a is a constant;
c. ß 1 + ß 2 = 1. (Hint: You must redefine the dependent variable in the regression.)
a. ß 1 = ß 2;
b. ß 1 + aß 2 = 0, where a is a constant;
c. ß 1 + ß 2 = 1. (Hint: You must redefine the dependent variable in the regression.)
Explanation
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The regression equation is given as foll...
Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
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