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Adv Topics in Econometrics

by: Aliya Schumm PhD

Adv Topics in Econometrics ECON 310

Marketplace > Vassar College > Economcs > ECON 310 > Adv Topics in Econometrics
Aliya Schumm PhD

GPA 3.64


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This 2 page Class Notes was uploaded by Aliya Schumm PhD on Wednesday October 28, 2015. The Class Notes belongs to ECON 310 at Vassar College taught by Staff in Fall. Since its upload, it has received 26 views. For similar materials see /class/230539/econ-310-vassar-college in Economcs at Vassar College.


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Date Created: 10/28/15
Economics 310 Handout IV NonSpherical Disturbances and GLS Consldex the model 13 u Eu o Euu am Where n 1s pesnwe de mle and symmeme Examplel Helsoskedashc y 2 a 0 0 0 52 0 0 032 2 0 0 oi 0 Example 11 Pm mdes anmconelahon 2 2 1 2 029 52 92 p p p p 1 p 93 92 p 1 Note that 7 my V where v 1s sphencally duhAhmed and 71lt p lt 1 Smce n 2s posmve de mleand symmeme there 2s a hohsmgnm malnxP such that n pp39 Nolelhal nquot P 39Pquot Let supposethal n and arelmown Then we can pmoeed as follows 7 mph PquotEu o P Rsxr uyk EP Rm391quot39 PquotEuu39139quot girdmp39 521 equahons we get the generalized least squares GLS eshmalox K PquotX PquotXquotPquotX Pquoty X Q X X 2 y X QquotX X 2 X u 13 X 2quotXquotX 2quotu EU EH17 1W m czlx39n xr39 II can be shown that GLS ls eqmvalenl m rmmrmzmg y 7 x yn quot y 7 x5 Commie OLS under nonrsphenml dishubances X39xquotx u Eu H037 W137 5 EX XquotX uu xx39xquot 52X39xquotx39nxx39xquot 52X Xquot fmn robust to the command reg c yd r robust


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