Question: Use the data in FERTIL3 for this exercise. (i) Add pet23 and pet24 to equation (10.19). Test for joint significance of these lags. (ii) Find

Use the data in FERTIL3 for this exercise.

(i) Add pet23 and pet24 to equation (10.19). Test for joint significance of these lags.

(ii) Find the estimated long-run propensity and its standard error in the model from part (i). Compare these with those obtained from equation (10.19).

(iii) Estimate the polynomial distributed lag model from Problem 6. Find the estimated LRP and compare this with what is obtained from the unrestricted model.

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