When the errors in a regression model have AR(1) serial correlation, why do the OLS standard errors tend to underestimate the sampling variation in the 11eb9ee2_f13f_cd89_8edd_5d18d4ce727d_SM2712_11 Is it always true that the OLS standard errors are too small

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609

Exercise 11

When the errors in a regression model have AR(1) serial correlation, why do the OLS standard errors tend to underestimate the sampling variation in the

Is it always true that the OLS standard errors are too small

Explanation

Verified

It is known that the Gauss-Markov theore...