Begin with the expression for b2 in equation (11.38). Using the auxiliary regressions in equations (11.2) and

Begin with the expression for b╛2 in equation (11.38). Using the auxiliary regressions in equations (11.2) and (11.11), reproduce the analysis of section€11.4 to demonstrate that

Transcribed Image Text:

i=l i=l (x2x1)i i=1 n (35)