Question: 4 Consider the error correction model in equation (18.37). Show that if you add another lag of the error correction term, yt2 xt2, the

4 Consider the error correction model in equation (18.37). Show that if you add another lag of the error correction term, yt2  xt2, the equation suffers from perfect collinearity. (Hint: Show that yt2  xt2 is a perfect linear function of yt1  xt1, xt1, and yt1.)

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