# Econometrics-Ordinary Least Squares (OLS) (ISS Statistics Paper III): Questions 1 - 5 of 5

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## Question number: 1

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2015

Essay Question▾

### Describe in Detail

Describe in detail Indirect Least square method for estimating structural parameters. Is the estimator unbiased and/or consistent?

### Explanation

For a just or exactly identified structural equation, the method of obtaining the estimates of the structural coefficients from the OLS estimates of the reduced-form coefficients is known as the method of indirect least squares (ILS), and the estimates thus obtained are known as the indirect least squares estimates. ILS… (277 more words) …

## Question number: 2

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2011

Essay Question▾

### Describe in Detail

If is an individual’s utility function of two goods, show that the demand for the goods is and

Where and are the fixed price and µ be the individual fixed income.

### Explanation

For consumer’s equilibrium, we have

and hence, we get

………………. (i)

since, µ the individual income is fixed, we have

Substituting the value of in (i),… (5 more words) …

## Question number: 3

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2012

Essay Question▾

### Describe in Detail

Discuss the practical consequences of autocorrelation. Show that

### Explanation

Practical consequences of autocorrelation:

1. OLS estimators are still unbiased and consistent.

2. The variance of the estimators are underestimated. In the presence of autocorrelation , but Thus, variance of may be either over estimated or under estimated depending upon the nature of the correlation.

3. Prediction will be… (175 more words) …

## Question number: 4

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2012

### Write in Short

If the demand curve is of the form , where p is the price and x is the demand, prove that the elasticity of demand is · Hence deduce the elasticity of demand for

## Question number: 5

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2012