Author Question: In the distributed lag model, the dynamic causal effect A) is the sequence of coefficients on the ... (Read 200 times)

rosent76 · **on:** Jun 29, 2018

In the distributed lag model, the dynamic causal effect

A) is the sequence of coefficients on the current and lagged values of X.
B) is not the same as the dynamic multiplier.
C) is generated by choosing different truncation points for the HAC standard errors.
D) requires estimation of the model by Cochrane-Orcutt method.

Question 2

HAC standard errors should be used because

A) they are convenient simplifications of the heteroskedasticity-robust standard errors.
B) conventional standard errors may result in misleading inference.
C) they are easier to calculate than the heteroskedasticity-robust standard errors and yet still allow you to perform inference correctly.
D) when there is a structural break, then conventional standard errors result in misleading inference.