Hi,
I'm new to stata programming and need some help on a simulation exercise.
I need to simulate an AR(1) process defined by:
yt = Byt-1 + et
et ~ N(0;1)
y0 = 0
For this exercise B can assume three values: i) '1.0'; ii) '0.9'; and iii) '0.5'. I need to simulate 1,000 series of 100 obs for each one of these three Bs.
Then I'm asked to estimate everything through OLS, so I can compare the results and comment the properties of the estimators.
Can anyone help me to implement a routine for this? I'm currently using STATA 14.
Thanks in advance.
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