Study Guide for EC 508
1.
Structure of Economic Data
2. The Simple Linear Regression Model (SLR)
3. Deriving OLS Estimates
4. Properties of OLS Estimators
5. Meanings of the slope variable in differen
*
* We will use one of the preloaded datasets
* to illustrate some Stata commands
* created by Danielle Trachtenberg on 1.30.15
*
clear
set more off
sysuse lifeexp.dta
*note that Stata data files are
Proof of MSR declining when |t|>1
Let the first estimated regression model be
. (1)
Let the second estimated regression model be
. (2)
Then the SSR1 for equation 1 is and the SSR2 for equation 2 is .
Proof that the Variance Estimator of the Error Terms is Unbiased in Simple Linear
Regression
Assume the model is yi = 0 + 1xi + ui.
(1)
Taking the sample average across the equation gives us
(2)
Subtr
Econometric Methods
Problem Set 3 - Chapter 5
Total: 114 points
Posted: September 18
1.
Due Date: September 25
Stock and Watson, Chapter 5, Question 5.4 (25 points)
(a) 2 pts
Estimated gain is 13.9. T