Question: Consider the distributed lag model Yt = 0 + 1 Xt + 2 Xt - 1 + 3 Xt - 2 + . . .

Consider the distributed lag model Yt = 0+ 1Xt + 2Xt-1+ 3Xt-2+...+ r+1Xt-r + ut. The dynamic causal effect is:
Group of answer choices
1
0+ 1
0+ 1+...+r+1
1+ 2+...+r+1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!