Questions 12
- Show that OLS estimator is unbiased even if explanatory variables are random. Write down the assumptions needed for this proof.
- What does it mean that the OLS estimator is consistent?
- (*) Prove that OLS estimator is consistent. What assumptions are needed for this proof?
- (*) Explain what it means that the OLS estimator has asymptotically normal distribution. How this property can be used to approximate the distribution of the estimator in small samples?
- When we are talking about endogeneity problem? What are the two most important causes of endogeneity problem? How the endogeneity problem does influence the properties of OLS?