The DOLS estimator has the following property if Xt and Yt are cointegrated:
A) it is BLUE even in small samples.
B) it is efficient in large samples.
C) it has a standard normal distribution when homoskedasticity-only standard errors are used.
D) it has a non-normal distribution in large samples when HAC standard errors are used.
Answer: B
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Which of the following is the primary source of cross-country differences in the real earnings of workers?
a. differences in natural resource endowments b. differences in output per worker c. differences in the average number of hours worked d. differences in the share of workers that are members of a labor union e. access to modern technology
Long-run decisions are:
A. constrained because all inputs are fixed. B. constrained because all inputs are variable. C. constrained because some inputs are fixed and others are variable. D. unconstrained because all inputs are variable.
After 1970, the share of federal spending allocated to national defense:
A. declined sharply, while the share allocated to income security increased substantially. B. rose sharply, while the share allocated to income security declined substantially. C. was relatively constant, while the share allocated to income security declined modestly. D. declined modestly, while the share allocated to income security was relatively constant.
Labor productivity will increase if the ________ increases and ________
A) quantity of capital per hour worked; technology improves B) quantity of labor per unit of capital; technology improves C) quantity of capital per hour worked; immigration increases while capital is fixed D) quantity of labor per unit of capital; immigration increases while capital is fixed