ahah I'm so stupid! when brushing my teeth I came up with the solution!
The only parameter that changes is the one on y(t-1) simply because the second regression implies subtracting y(t-1) from both sides and thus Gamma4 will be equal to Beta4-1.
Nothing changes to the other parameters...
Search found 2 matches
- Wed Mar 30, 2011 5:16 pm
- Forum: Econometric Discussions
- Topic: Regression
- Replies: 1
- Views: 2114
- Wed Mar 30, 2011 3:22 pm
- Forum: Econometric Discussions
- Topic: Regression
- Replies: 1
- Views: 2114
Regression
Hi all guys, I'm new here! :D :D I have a question for you: http://img263.imageshack.us/img263/4571/64038866.jpg Now, the correct answers are: b,c,d,f The problem is that I do not understand why... :cry: I know that B=(X ' X)^-1X ' Y In both models (X ' X)^-1X ' will be equal, however the Y vector c...