Ch. 7 Violations of the ideal conditions 1 ST pecification 1.1 Selection of variables Consider a initial model. which we assume that Y=x1/1+E, It is not unusual to begin with some formulation and then contemplate adding more variable(regressors) to the model
Ch.8 Nonspherical Disturbance This chapter will assume that the full ideal conditions hold except that the covari- ance matrix of the disturbance, i.e. E(EE)=02Q2, where Q is not the identity matrix. In particular, Q may be nondiagonal and / or have unequal diagonal ele- ments Two cases we shall consider in details are heteroscedasticity and auto-
NUMERICAL SoL°To ·G川EN舟c。 MPLEX SET of0 YNAMICS 义(t)=斤(x,x) WHERE f()CouL0BE升MNLE升 R FUNCTI0N 工TCNB.工 MOss8 LE To ACTVALLY SoLVE FoR×(t)∈ ACTLY →0 EVELoP A则 UMERICAL SOLUTION. cA小NE0co0 ES TO HELP v5 D。TwsτN MATLAB BUT LET US CONSIDER THE BAsIcs