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… (428 more words) …

Question number: 2

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2011

Essay Question▾

Describe in Detail

If U=cxαyβ is an individual’s utility function of two goods, show that the demand for the goods is x=αα+βμpx and y=βα+βμpy

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

Explanation

For consumer’s equilibrium, we have

1px.ux=1py.uy

U=cxαyβ and hence, we get

1px.cαxα1yβ=1py… (182 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

V(Ut)=σ21σ2

Explanation

Practical consequences of autocorrelation:

  1. OLS estimators are still unbiased and consistent. E(β^1)=β1

  2. The variance of the estimators are underestimated. In the presence of autocorrelation Var(β^1)σu2xi2, but… (539 more words) …

Question number: 4

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2012

Short Answer Question▾

Write in Short

If the demand curve is of the form p=αekx , where p is the price and x is the demand, prove that the elasticity of demand is 1kx · Hence deduce the elasticity of demand for p=10ex2

Question number: 5

» Econometrics » Ordinary Least Squares (OLS)

Appeared in Year: 2012

Short Answer Question▾

Write in Short

Let the demand function be expressed as P=45X2 . For what value of X, the elasticity of demand will be unitary?

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