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4 j is unbiased and consistent actually consistency

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Unformatted text preview: tency of the OLS Estimator: Theorem 5.1 Conveniently, the same ass.s imply both unbiasedness and consistency ˆ of OLS: Theorem 5.1 states that under LR.1-LR.4, βj is (unbiased and) consistent. Actually, consistency obtains under a less stringent version of LR.3 which we call LR.3’or Zero Mean and Zero Correlation (ZC): E [u ] = 0 and Cov (u , xk ) = 0 for k = 1, ..., K . Melissa Tartari (Yale) Econometrics 10 / 27 Consistency of the OLS Estimator: Theorem 5.1 Conveniently, the same ass.s imply both unbiasedness and consistency ˆ of OLS: Theorem 5.1 states that under LR.1-LR.4, βj is (unbiased and) consistent. Actually, consistency obtains under a less stringent version of LR.3 which we call LR.3’or Zero Mean and Zero Correlation (ZC): E [u ] = 0 and Cov (u , xk ) = 0 for k = 1, ..., K . (Recall: we showed LR .3 ) LR .30; in general LR .30 ; LR .3). Melissa Tartari (Yale) Econometrics 10 / 27 Consistency of the OLS Estimator: Theorem 5.1 Conveniently, the same ass.s imply both unbiasedness and c...
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This note was uploaded on 02/13/2014 for the course ECON 350 taught by Professor Donaldbrown during the Fall '10 term at Yale.

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