Author Question: The distributed lag model is given by A) Yt = 0 + 1Xt + 2Yt-1 + ut. B) Yt = 0 + 1Yt-1 + 2Yt-2 + ... (Read 496 times)

magmichele12 · **on:** Jun 29, 2018

The distributed lag model is given by

A) Yt = 0 + 1Xt + 2Yt-1 + ut.
B) Yt = 0 + 1Yt-1 + 2Yt-2 + ... + rYt-r + ut.
C) Yt = 0 + 1ut + 2ut+1 + 3ut+2 + ... + r+1ut+r + et.
D) Yt = 0 + 1Xt + 2Xt-1 + 3Xt-2 + ... + r+1Xt-r + ut.

Question 2

In time series, the definition of causal effects

A) says that one variable helps predict another variable.
B) does not make much sense since there are not multiple subjects.
C) assumes that the same subject is being given different treatments at different points in time.
D) requires panel data.