If there is evidence of serial correlation, then FGLS is preferred over OLS because the FGLS estimator is unbiased.
Answer the following statement true (T) or false (F)
False
Rationale: The FGLS estimator is not unbiased, however it is consistent when data are weakly dependent.It is asymptotically more efficient than the OLS estimator when the AR(1) model for serial correlation holds and the explanatory variables are strictly exogenous.
You might also like to view...
Today, the dollar is worth 1.15 euros. Due to changes in economic conditions, people expect that the dollar will be worth 1.20 euros in the next month. This belief
A) increases the demand for dollars. B) decreases the demand for dollars. C) increases the demand for euros. D) increases the value of exports to Europe.
If another worker adds 9 units of output to a group of workers who had an average product of 7 units, then the average product of labor
A) will decrease. B) will remain the same. C) will increase. D) and what will happen to it cannot be determined.
Studies of PPP covering many years will be more likely to yield evidence of PPP than studies based on short-run data
Indicate whether the statement is true or false
Use the following table, which shows the supply and demand schedules for the euro, to answer the next question.Quantity of Euros SuppliedPriceQuantity of Euros Demanded400$1.101003601.002003000.903002860.804002670.70500If European governments decide to fix the price of a euro at $0.80, they would have to ________.
A. sell 114 euros B. buy 114 euros C. sell 286 euros D. buy 286 euros