Problem

If we think that ft is positive in (13.14) and that Aw. and Aunem. are negatively corre¬la...

If we think that ft is positive in (13.14) and that Aw. and Aunem. are negatively corre¬lated, what is the bias in the OLS estimator of ft in the first-differenced equation? [Hint: Review equation.]

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Solutions For Problems in Chapter 13