The Washington Post published data on bike share ridership (measured in trips per day) over the month
Question:
The Washington Post published data on bike share ridership (measured in trips per day) over the month of January 2014. Bike share ridership is what we want to explain. The Post also provided data on daily low temperature (a variable we call lowtemp) and a dummy variable for weekends. We'll use these as our explanatory variables. The data is available in BikeShare.dta.
(a) Use an auxiliary regression to assess whether the errors are autocorrelated.
(b) Estimate a model with Newey-West standard errors. Compare the coefficients and standard errors to those produced by a standard OLS model.
(c) Estimate a model that corrects for \(\mathrm{AR}(1)\) autocorrelation using the \(ho\)-transformation approach. \({ }^{16}\) Are these results different from a model in which we do not correct for \(\operatorname{AR}(1)\) autocorrelation?
Step by Step Answer:
Given the complexity and detailed nature of this question Ill guide you through each part step by step based on the theoretical approach for dealing with these statistical methods This explanation wil...View the full answer
Real Econometrics The Right Tools To Answer Important Questions
ISBN: 9780190857462
2nd Edition
Authors: Michael Bailey
