Consider the regression model Yi = 0 + 1X1i + 2X2i + ui. Use Approach #2 from

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Consider the regression model Yi = β0 + β1X1i + β2X2i + ui. Use Approach #2 from Section 7.3 to transform the regression so that you can use a t-statistic to test
(a) β1 = β2;
(b) β1 + aβ2 = 0, where a is a constant;
(c) β1 + β2 = 1.

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Introduction to Econometrics

ISBN: 978-0133595420

3rd edition

Authors: James H. Stock, Mark W. Watson

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Question Posted: Apr 29, 2016 03:35 PM

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Consider the regression model Yi = 0 + 1X1i + 2X2i + ui. Use Approach #2 from

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Introduction to Econometrics

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