Explain the generalised least square procedure, Microeconomics

Assignment Help:

(a) What is  meant by heteroscedasticity and what are the consequences of applying OLS estimation in its presence?

(b) Explain in details the Generalised least Square procedure that can be used to correct  the problem of heteroscedasticity  and propose other alternative solutions?

(c) Explain and show graphically what autocorrelation means, what  are  the consequences of ignoring it and how can the application of the Durbin-Watson test helps in detecting it?


Related Discussions:- Explain the generalised least square procedure

Differentiate between inflation and unemployment, Differentiate between inf...

Differentiate between inflation and unemployment.  Inflation is an increase in the general price level that results in a decline in the purchasing power of money. In economics,

Types of unemployment, Types of unemployment: Frictional Unemployment...

Types of unemployment: Frictional Unemployment: -It refers to unemployment caused by changes in individual labour markets.This is the type of unemployment resulting from peop

Steam question, Processors of aseptically packaged juice-based beverages mu...

Processors of aseptically packaged juice-based beverages must adequately heat their product before packaging it in order to be sure that they have “killed” the microorganisms which

Find out market equilibrium price and quantity , Question Suppose you w...

Question Suppose you work for the state government of California. Due to the heavy traffic jam on I-880, the state has decided to decide to construct a new highway. To fund a p

Gdp components, study on internet will impact on gdp

study on internet will impact on gdp

The nature of policy-making, The Nature of Policy-Making : It follows...

The Nature of Policy-Making : It follows that recommending policy must itself be a subjective exercise. The effects of particular-policies at a particular historical juncture

Theory of consumer behavior, THEORY OF CONSUMER BEHAVIOR: It is genera...

THEORY OF CONSUMER BEHAVIOR: It is generally observed that market aggregate demand curve for a commodity is downward sloping, given other things. Our problem is to investigate

Problems of population census, Problems of population census: High ...

Problems of population census: High Cost of Census: Censuses are supposed to be conducted at a 10 year interval. The high cost of conducting census has made it impossibl

Equilibrium level of economic output, Provide an economic explanation of wh...

Provide an economic explanation of what you have shown in your diagram above.  Iceland was a small open economy with perfect capital mobility. Consequently, the equilibrium domesti

Market intervention by government, Market intervention by government Gover...

Market intervention by government Government intervenes in various degrees in different countries. Free economy is almost non-existent in the modem world. In real world, the form,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd