In the classical regression model with fixed regressors the statistic S^2 , i.e. the sum of squared residuals (SSR) divided by the number of degrees of freedom, is an unbiased estimator of the variance of the disturbances. If the model is dynamic and contains lagged-dependent explanatory...

In the classical regression model with fixed regressors the statistic S2, i.e. the sum of squared residuals (SSR) divided by the number of degrees of freedom is an unbiased estimator of the variance of the disturbances. If the model is dynamic and contains lagged-dependent explanatory variables,...