Consider again equations (7.27)(7.29). Equation (7.27) contains Y2 and Y3 but are separate equations required for

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Consider again equations (7.27)–(7.29). Equation (7.27) contains Y2 and Y3 – but are separate equations required for them, or could the variables Y2 and Y3 be treated as exogenous variables (in which case, they would be called X3 and X4

!)? This can be formally investigated using a Hausman test, which is calculated as shown in Box 7.2.

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Introductory Econometrics For Finance

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4th Edition

Authors: Chris Brooks

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Question Posted: Jul 23, 2024 09:00 AM

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Consider again equations (7.27)(7.29). Equation (7.27) contains Y2 and Y3 but are separate equations required for

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Introductory Econometrics For Finance

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