Autocorrelation does not bias the parameter estimates

Assignment Help Business Economics

Reference no: EM13894186

Autocorrelation does not bias the parameter estimates, however, few econometricians would trust parameter estimates derived from models with auto-correlated residuals. Why?

Reference no: EM13894186

Questions Cloud

Tax policy act as automatic stabilizers for macro economy : How does a government spending and tax policy act as automatic stabilizers for the macro economy? Given the logic of the automatic stabilizers, why should we be concerned about deficit cutting efforts during a recession? What types of lags in fiscal ..

Discuss various cultural models in terms of immigration : Discuss various cultural models in terms of immigration, such as assimilation, pluralism, and multiculturalism. What model is used today? Discuss the assimilation, pluralism, and multiculturalism models, and include their historical timelines.

Cost cutting cannot increase profits : Cost-effectiveness analysis compares the value of an innovation with its cost. Cost cutting cannot increase profits. Insurance creates a principal-agent relationship that is not common outside of healthcare. Which function of management is most conc..

Marginal product curve is increasing from workers : If the marginal product curve is increasing from workers 1-89 and then decreases steadily, crossing the horizontal axis at 190 workers, we know that the total output curve increases from workers 1-89, decreases from workers 90-189, and becomes 0 at t..

Autocorrelation does not bias the parameter estimates : Autocorrelation does not bias the parameter estimates, however, few econometricians would trust parameter estimates derived from models with auto-correlated residuals. Why?

What direction changes net exports and net capital outflow : Suppose that Bill, a resident of the U.S., buys software from a company in Japan. Explain why and in what direction this changes U.S. net exports and U.S. net capital outflow.

Calculate the firms maximized profit and revenue : Calculate the firm’s maximized profit, and the revenue and cost that produce that profit. (h) Calculate the elasticity of demand at the profit-maximizing point. (i) What is the firm’s markup at the profit-maximizing point? Confirm that this markup ha..

Social insurance programs and public assistance programs : Discuss the differences that exist between social insurance programs and public assistance programs. What is your opinion regarding how far the government should go in providing assistance to those who need these programs?

Involvement of government in the education system : Discuss the various ways federal, state, and local governments attempt to promote education as equality of opportunity. What are the some positives and negatives you see in the involvement of government in the education system?

User Account

All Pages