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2. Use data EZANDERS.dta to estimate the following regressions model: log (uclms) = β0 + β1 · t + d1feb + d2mar + · · · + d11dec + u (a) Report the regression results. (b) Add Enterprise zone (EZ) dummy variable (ez) to the above regression and estimate the first order autocorrelation coefficient as et = γ0 + γ1et−1 + t, where et is the OLS residual from the regression. What implications does this have for OLS? (c) If you want to use OLS but also want to obtain a valid standard error for the EZ coefficient, what would you do?

          2. Use data EZANDERS.dta to estimate the following regressions model: log (uclms) = β0 + β1 · t + d1feb + d2mar + · · · + d11dec + u 
    (a) Report the regression results. 
    (b) Add Enterprise zone (EZ) dummy variable (ez) to the above regression and estimate the first order autocorrelation coefficient as et = γ0 + γ1et−1 + t, where et is the OLS residual from the regression. What implications does this have for OLS? 
    (c) If you want to use OLS but also want to obtain a valid standard error for the EZ coefficient, what would you do?

Added by Asunci-N V.

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