ECON 818 Final: ECON 818 KU 818Final Exam95

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31 Jan 2019
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Final exam y1 = x1 1 + 1: consider a set of two seemingly unrelated regressions (sur). where x1 = [x2 z], that is x2 is a subset of x1. Yt1 = a21 yt2 + b11 xt1 + b21 xt2 + t1: let and where the "s are normally and independently distributed with mean zero and a constant variance, and. Given the observations y1 = 1, y2 = 4, y3 = 6, y4 = 5, and y5 = 9, obtain the best estimate of that you can get. State all the desirable properties of the estimator used: the model specified by generates the following second moment matrix. In the absence of a government sector, we have the identity where i is investment. For this model: write the reduced form of the system comprised by (1) and (2), show that the ols estimate of b in equation (1) is inconsistent.

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