Question: (LSDV) Show that the OLS estimator is a matrix-weighted average of the LSDV and between-groups estimators, $hat{beta}_{DV}$ and $hat{beta}_B$, respectively.

(LSDV) Show that the OLS estimator is a matrix-weighted average of the LSDV and between-groups estimators, $\hat{\beta}_{DV}$ and $\hat{\beta}_B$, respectively.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Econometric Analysis Questions!

(LSDV) Show that when $T=2$ the LSDV estimator of $\beta_0$ in (24.1) is equivalent to OLS fitted coefficients from a regression of $y_{n2} - y_{n1}$ on $x_{n2} - x_{n1}$.

,. I NEED YOUR EFFORT HERE PLEASE 1. The simple linear regression model Y, = Bo + Bir; +;, &; " N(0, 0'), i = 1, ..., n, can also be written as a general linear model Y = XB+E, where Y = (Y1, . . .,...

Problem 1 Suppose you are studying the correlation between diabetes and exercise. You have a data set describing whether individuals in the sample have diabetes and whether they exercise regularly....

All questions pertain to the simple (two-variable) linear regression model for which the population regression equation can be written in conventional notation as: Y += + uX ii10i (1) where Yi and Xi...

Using the regression given in equation (3.1): (a) Show that OLS = + ( OLS)X + u; and deduce that E(OLS) = . (b) Using the fact that OLS = n i=1 xiui/ n i=1 x2i ; use the results in part (a) to...

Consider a simple nonlinear regression model of the form that yi = ln1xi + ui (0.1) (i) Derive the ordinary least square estimator (OLS) of ln 1. (ii) Discuss whether the sum of the OLS residuals is...

Answer all the questions: All questions pertain to the simple (two-variable) linear regression model for which the population regression equation can be written in conventional notation as: Y; =Bo +...

In the multiple regression, to get the unbiasedness of the OLS estimators, the following assumptions must hold except for: A.The value of the explanatory variables must not contain any information...

International Finance Assignment #3 Consider the following linear regression model: Y = XB+e, where k is the number of independent variables, X = [X1 X2 ...Xk]: Tx k, (X1 X2 ... Xk) are linearly...

Suppose you have the following specification, where e may be correlated with r: 1 = BX + e. 1. You have instruments z and ( which are mutually uncorrelated. What are their necessary properties to...

Select a manufacturing organization for justifying "Companies with labor incentive manufacturing processes are most likely to benefit from sending manufacturing operations overseas because the bulk...

ABC Manufacturing has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and the current quote is 950 and the cost of debt (RD) is 5.45%. The company's...

BE7.3 (LO 2) Obihiro Ltd. has the following information related to its inventory of embroidered baseball caps: purchase price, 45,000,000; import duties, 375,000; interest costs on inventory loan,...

Oxygen concentration is reduced by 2% each breath (that is, if the concentration before absorption were 18%, it would be 16% after absorption). Find the discrete-time dynamical system and the...