Plim n1 plim Ewt wxtE Xt

where use is made of the properties of plim, namely, that plim (A + B) = plim A + plim B and plim (A\ = plim A

B J plim B

Now as the sample size is increased indefinitely, the second term in both the denominator and the numerator of (5) tends to zero (why?), yielding n3

showing that, although biased, 01 is a consistent estimator of 01.

CHAPTER TWENTY: SIMULTANEOUS-EQUATION METHODS 791

Was this article helpful?

0 0
Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.

Get My Free Ebook


Post a comment