If, in addition to the least squares assumptions made in the previous chapter on the simple regression model, the errors are homoskedastic, then the OLS estimator is
A) identical to the TSLS estimator.
B) BLUE.
C) inconsistent.
D) different from the OLS estimator in the presence of heteroskedasticity.
Answer: B
Economics
You might also like to view...
Acquiring information on a bank's activities in order to determine a bank's risk is difficult for depositors and is another argument for government
A) regulation. B) ownership. C) recall. D) forbearance.
Economics
During the period from 1970 to the present, the U.S. economy experienced a Great Inflation, a Great Moderation, and a Great Recession. How does this sequence illustrate the concept of a "business cycle"?
What will be an ideal response?
Economics