Chat with AI
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 8
Use the data in PHILLIPS.RAW to answer these questions.
(i) Using the entire data set, estimate the static Phillips curve equation inf 1 = 0 + 1 unem t + u t by OLS and report the results in the usual form.
(ii) Obtain the OLS residuals from part (i), û t , and obtain p from the regression û t on û t-1. (It is fine to include an intercept in this regression.) Is there strong evidence of serial correlation
(iii) Now estimate the static Phillips curve model by iterative Prais-Winsten. Compare the estimate of 1 with that obtained in Table 12.2. Is there much difference in the estimate when the later years are added
(iv) Rather than using Prais-Winsten, use iterative Cochrane-Orcutt. How similar are the final estimates of p How similar are the PW and CO estimates of 1
Dependent Variable: inf
(i) Using the entire data set, estimate the static Phillips curve equation inf 1 = 0 + 1 unem t + u t by OLS and report the results in the usual form.
(ii) Obtain the OLS residuals from part (i), û t , and obtain p from the regression û t on û t-1. (It is fine to include an intercept in this regression.) Is there strong evidence of serial correlation
(iii) Now estimate the static Phillips curve model by iterative Prais-Winsten. Compare the estimate of 1 with that obtained in Table 12.2. Is there much difference in the estimate when the later years are added
(iv) Rather than using Prais-Winsten, use iterative Cochrane-Orcutt. How similar are the final estimates of p How similar are the PW and CO estimates of 1
Dependent Variable: inf
Explanation
This question doesn’t have an expert verified answer yet, let Quizplus AI Copilot help.
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
