12102007 19 5A1 1 2 2 3 3 2 2 1 2 2 2 3 3 2 2 3 1 2 3 2 3 3 3 i i i i i i i i i

12102007 19 5a1 1 2 2 3 3 2 2 1 2 2 2 3 3 2 2 3 1 2 3

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12/10/2007 19 (5A.1) 1 2 2 3 3 2 2 1 2 2 2 3 3 2 2 3 1 2 3 2 3 3 3 i i i i i i i i i i i i i i i Nb x b x b y x b x b x x b x y x b x x b x b x y + + = + + = + + = Slide 5-55 Principles of Econometrics, 3rd Edition 2 2 2 3 3 3 let , , i i i i i i y y y x x x x x x = = = ( )( ) ( )( ) ( )( ) ( ) 1 2 2 3 3 2 2 3 3 2 3 2 2 2 2 2 3 2 3 i i i i i i i i i i i b y b x b x y x x y x x x b x x x x = = Slide 5-56 Principles of Econometrics, 3rd Edition ( )( ) ( )( ) ( )( ) ( ) 2 3 2 2 3 2 3 2 2 2 2 3 2 3 i i i i i i i i i i i y x x y x x x b x x x x =
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