The DOLS Estimator Has the Following Property If X_t and Y_t

question 27

Multiple Choice

The DOLS estimator has the following property if X_t and Y_t are cointegrated:

• A)it is BLUE even in small samples.
• B)it is efficient in large samples.
• C)it has a standard normal distribution when homoskedasticity-only standard errors are used.
• D)it has a non-normal distribution in large samples when HAC standard errors are used.

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Definitions:

Property, Plant

Assets that are used in operations and have a useful life longer than one year, such as buildings, machinery, and equipment.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Operating Activities

The day-to-day functions of a business related to producing and delivering its goods and services, as reflected in its cash flow.