# Question

The data file Money UK contains observations from the United Kingdom on the quantity of money in millions of pounds (Y); income, in millions of pounds (X1); and the local authority interest rate (X1). Estimate the model (Mills 1978)

yt = β0 + β1x1t + β2x2t + γyt-1 + εt

and write a report on your findings.

yt = β0 + β1x1t + β2x2t + γyt-1 + εt

and write a report on your findings.

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