Economics231W,Econometrics.docVIP

Economics 231W, Econometrics University of Rochester Fall 2008 Homework: Chapter 13 and 14 Text Problems: Chapter 13: Heteroscedasticity: 13.1, 13.2, 13.7, 13.10 Chapter 14: Autocorrelation: 14.7, 14.8, 14.10, 14.11, 14.12, 14.17, 13.1. Heteroscedasticity means that the variance of the error term in a regression model does not remain constant between observations. (a) The OLS estimators are still unbiased but they are no longer efficient. (b) and (c) Since the estimated standard errors of OLS estimators may be biased, the resulting t ratios are likely to be biased too. As a result,