Answer to Question #316626 in Economics of Enterprise for given

Question

describe the concept of consistency of the slope parameters in a simple regression when all assumption hold, show this mathematically

Answer 1

When we talk about consistent estimation, we mean consistency of estimating the parameters β from a regression like y=α+βx+u. We don't know the true value of the slope of x in this linear model, i.e. we don't know the true value of β. This is why we estimate it in the first place.