(i) Using the data in WAGEPRC, estimate the distributed lag model from Problem 5 in Chapter 11 . Use regression (12.14) to test for A R(1) serial correlation. (ii) Reestimate the model using iterated Cochrane- Orcutt estimation. What is your new estimate of the long-run propensity? (iii) Using iterated CO, find the standard error for the LRP. (This requires you to estimate a modified equation.) Determine whether the estimated LRP is statistically different from one at
(i) Using the data in WAGEPRC, estimate the distributed lag mode…
Jan 27, 2021
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