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Unformatted text preview: D. Steigerwald (UCSB) Population Models August 2010 2 / 3 Zero Correlation: Regressor and Error Scalar Model Y t = + 1 X t + U t Because U t is unobserved, if X t and U t covary, then cannot determine is not identi&ed Exogeneity Assumption E ( X t U t ) = D. Steigerwald (UCSB) Population Models August 2010 3 / 3...
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- Fall '08