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
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