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Unformatted text preview: Get the OLS estimates of the intercept and slope coefficients using Stata as well. 3. Suppose the classic linear regression model applies to y=bx+e. a. What is the OLS estimator for the slope coefficient when there is no constant term? Show your work. b. The slope coefficient in the regression of x on y is just the inverse of the slope from the regression of y on x (no constant term in both cases). Is this statement true, false, or uncertain? Explain your answer. c. Run a regression of the above form in Stata using PSID data. Note that to run a regression without a constant term in Stata, you need to use the option “noconstant”. When you switch x and y in the regression, is the slope coefficient the inverse of the original slope coefficient? Show your work....
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This note was uploaded on 03/28/2012 for the course PADP 8130 taught by Professor Fertig during the Spring '12 term at LSU.
 Spring '12
 Fertig

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