Question: Triangular, or arithmetic, distributed-lag model. This model assumes that the stimulus (explanatory variable) exerts its greatest impact in the current time period and then declines

Triangular, or arithmetic, distributed-lag model.€ This model assumes that the stimulus (explanatory variable) exerts its greatest impact in the current time period and then declines by equal decrements to zero as one goes into the distant past. Geometrically, it is shown in Figure 17.9. Following this distribution, suppose we run the following succession of regressions:

(2X; + X¡-1 Y, = a + B 3 (ЗX, + 2X,-1+ Х, 2 Y; = a +B ( 4X; +3X1-1 +2X,-2+ X1-1 Y; = a +B 10

etc., and choose the regression that gives the highest R² as the €œbest€™€™ regression. Comment on this strategy.

Be Time

(2X; + X-1 Y, = a + B 3 (X, + 2X,-1+ , 2 Y; = a +B ( 4X; +3X1-1 +2X,-2+ X1-1 Y; = a +B 10 Be Time

Step by Step Solution

★★★★★

3.22 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Similar to Koyck Alt Tinbergen and other models this approach is ad hoc and has litt... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (2 attachments)

1529_605d88e1e22e0_666651.pdf

180 KBs PDF File

1529_605d88e1e22e0_666651.docx

120 KBs Word File

Students Have Also Explored These Related Econometrics Questions!

Youve been hired to determine the impact of advertising on gross sales revenue for Four Musketeers candy bars. Four Musketeers has the same price and more or less the same ingredients as competing...

Turn the previous problem around. Now assume that the stores service level requirement obligates it to meet customer demand on 99% of all order cycles. In other words, use model 4. What (R,Q) policy...

The first (R,Q) model in this section assumes that the total shortage cost is proportional to the amount of demand that cannot be met from on-hand inventory. Similarly, the second model assumes that...

Due Sunday, 11/20: Problems from Zimmerman text: 2-11, 2-44, Case 2-3, 7-7, and 7-20 Chapter Two The Nature of Costs Chapter Outline A. Opportunity Costs 1. Characteristics of Opportunity Costs 2....

Please Provide a 2 to 3 page article review for each, there attached on this question. Your discussion should include a brief summary (including the big ideas or major points of the article) along...

Need help with finance assignment. The questions are attached. need help for pages 8 to 18. 1. A(n) _______________ has a _______________ distribution and is best characterized by its_______________...

MBA 520 Module Six Forecasting Model Questions The questions that follow and the article Comparing the Accuracy and Explainability of Dividend, Free Cash Flow, and Abnormal Earnings Equity Value...

Card, D., Krueger, A.B. (1994). Minimum wages and employment: a case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772-93. Once you have read your...

6 | Consumer Choices Figure 6.1 Investment Choices Higher education is generally viewed as a good investment, if one can afford it, regardless of the state of the economy. (Credit: modification of...

Once you have read the article ?Comparing the Accuracy and Explainability of Dividend, Free Cash Flow, and Abnormal Earnings Equity Value Estimates?, review and complete the questions below. Use the...

Bank Beta has an inventory of AAA-rated, 10-year zero-coupon bonds with a face value of $100 million. The modified duration of these bonds is 12.5 years, the DEAR is $2,150,000, and the potential...

Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information: Direct materials $600...

In determining cost of good soul to alternative concepts can be used absorption and variable costing

The government has decided that the free market price of tobacco is too low. a. Suppose the government imposes a binding price floor in the tobacco market. Use a supply and demand diagram to show the...

Bill and Mary plan to marry in December 2017. Bills salary is $32,000 and he owns his residence. His itemized deductions total $12,000. Marys salary is $39,000. Her itemized deductions total only...

Which of the following taxpayers must file a 2017 return? a. Amy, age 19 and single, has $8,050 of wages, $800 of interest, and $350 of self-employment income. b. Betty, age 67 and single, has a...

In the following situations, indicate whether the taxpayer qualifies as a head of household. a. Allen is divorced from his wife. He maintains a household for himself and his dependent mother. b. Beth...

The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 2 0 , 9 0 0 Current assets $ 1 2 , 1 0 0 Debt $ 1 6 , 9 0 0 Costs 1 4 , 4 0 0 Fixed...

Experiment: Selecting a single card from a standard playing deck. Which has 4 suits (Hearts, Clubs, Spades, and Diamonds) and 13 Cards per suit (2-10, Jack, Queen, King, Ace) .So there are a total of...

Seether, Inc., has the following two mutually exclusive projects available. Year Project R Project S 0 $ 81,500 $ 101,200 1 28,600 25,300 2 27,600 25,300 3 25,600 40,300 4 19,600 35,300 5 10,700...