(Solved):   Question from Applied Econometrics Please answer both options (10 Marks) 1.5) Below are ...

 

Question from Applied Econometrics
Please answer both options
(10 Marks)

1.5) Below are several assumptions of the following simple regression model. y, = 3, +3,x, +u, (a) y, ~ 1(1), x, ~ I(1), u, ~1(0) 1) Is this case possible? If so, when? 2) Is the OLS estimator for B, consistent? (b) y, ~ I(0), X, ~ I(1), u, - I(0) 3) Is this case possible? If so, when? 4) Is the OLS estimator for B, consistent? (c) y, ~I(1), x, ~I(1), u, ~I(1) 5) Is this case possible? If so, when? 6) Is the OLS estimator for B, consistent? (d) y, ~ I(1), x, ~1(0), u, ~I(0) 7) Explain if this case is possible. 9 .