The DOLS Estimator Has the Following Property If Xt and Yt

question 5

Multiple Choice

The DOLS estimator has the following property if Xt and Yt 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:

Time-Sales Financing

A financing method where payments are made in installments over a predetermined time period.

Prepayment Penalties

Fees charged to borrowers for paying off a loan early, as compensation for the lender's lost interest income.

Pledge of Inventory

The use of a company's inventory as collateral to secure a loan or meet other financial obligations.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.