The Dynamic OLS (DOLS)estimator of the Cointegrating Coefficient,if Yt and Xt

question 12

Multiple Choice

The dynamic OLS (DOLS) estimator of the cointegrating coefficient,if Yt and Xt are cointegrated,

• A)is efficient in large samples
• B)statistical inference about the cointegrating coefficient is valid
• C)the t-statistic constructed using the DOLS estimator with HAC standard errors has a standard normal distribution in large samples
• D)all of the above

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Definitions:

Long-term Basis

An approach or strategy focused on goals, investments, or plans that extend beyond the immediate or short-term period.

Accounts Receivable Turnover

A ratio that measures how effectively a company collects its receivables or the efficiency of its credit policies.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.