EconometricsOrdinary Least Squares (OLS) (ISS (Statistical Services) Statistics Paper III): Questions 1  5 of 5
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Question number: 1
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2015
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 reducedform 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
Question number: 2
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2011
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),
Question number: 3
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2012
Describe in Detail
Discuss the practical consequences of autocorrelation. Show that
Explanation
Practical consequences of autocorrelation:

OLS estimators are still unbiased and consistent.

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.

Prediction will be
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
Write in Short
Let the demand function be expressed as. For what value of X, the elasticity of demand will be unitary?