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Econometrics

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Moderate

Estimation with AR(1) Serial Autocorrelation: Interpreting Values

EMETRC-CFE6T5

If you estimate a model that has a serially autocorrelated error structure using a feasible generalized least squares approach, you can interpret the estimated parameter values

A

as a regression of a quasi-differenced dependent variable on a non-differenced independent variable.

B

as a regression of a non-differenced dependent variable on a quasi-differenced independent variable.

C

as an elasticity measure.

D

in the same manner as if no adjustment was made because only the standard errors were adjusted.

E

as a regression of a quasi-differenced dependent variable on a quasi-differenced independent variable.