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Explain why the OLS estimator for the following model is inconsistent if random errors are serially correlated of order 1. Y t = 1

Explain why the OLS estimator for the following model is inconsistent if random errors are serially correlated of order 1.

                Yt = β1 + β2Xt + β3Yt‒1 + ut

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The consequences of Serial Correlation Pure serial correlation does not cause bias ... blur-text-image

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