This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: D. Steigerwald (UCSB) Population Models August 2010 2 / 3 Zero Correlation: Regressor and Error Scalar Model Y t = β + β 1 X t + U t Because U t is unobserved, if X t and U t covary, then cannot determine β β is not identi&ed Exogeneity Assumption E ( X t U t ) = D. Steigerwald (UCSB) Population Models August 2010 3 / 3...
View Full Document
- Fall '08