Derive Equation (16.7) from Equation (16.4), and show that \(\delta_{0}=\beta_{0}\), \(\delta_{1}=\beta_{1}, \delta_{2}=\beta_{1}+\beta_{2}, \delta_{3}=\beta_{1}+\beta_{2}+\beta_{3}\) (etc.). Note that \(X_{t}=\Delta X_{t}+\) \(\Delta X_{t-1}+\cdots+\Delta X_{t-p+1}+X_{t-p}\).

Equation (16.7) 

Equation (16.4)

Transcribed Image Text:

Y = 80 +8AX + 8AX-1 + 83AX1-2 + +8,AX-r+1 + d + 1 r + U 1-r