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Suppose the population model is log(?) = 8 + 8 ?*+? with Eu | x *]=0. However, the econometrician measures * with error, e, such
Suppose the population model is log(?) = 8 + 8 ?*+? with Eu | x *]=0. However, the econometrician measures * with error, e, such that he she observes x, where x = x*+e, ande is uncorrelated with ?*. The OLS estimator for / can be written as B = B +. , Where v. =u - Be . Ex - x k Demonstrate that the estimator is biased
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