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:

Net Income

Net income is the total profit of a company after all expenses and taxes have been deducted from revenue, indicating its earnings.

Amortization of Bond

The gradual reduction of the book value of a bond payable account through regular payments over the life of the bond.

Gain on Sale

The profit realized from the sale of assets when the selling price exceeds the book value.

Noncurrent Assets

Assets not expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer; includes property, plant, and equipment.