Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 1

In Example 11.6, we estimated a finite DL model in first differences:

Use the data in FERTIL3.RAW to test whether there is AR(1) serial correlation in the errors.

Step 1 of 4

In order to test whether there is AR (1) serial correlation in the errors, follow the following steps:

1) Estimate the model given by:

2) Estimate the error term

3) Regress on

4) Test for the statistical significance of the coefficient of