Question: Consider the model Yt = 0 + 1X1t + Yt-1 + t. If X1 is increased by one unit in period t, holding everything else

Consider the model Yt = 0 + 1X1t + Yt-1 + t. If X1 is increased by one unit in period t, holding everything else constant, what is the expected increase in Yt+3 ?

a.

21

b.

c.

31

d.

Consider the model Yt = 0 + 1X1t + Yt-1 + t.

Consider the model Yt = 30 + 31X1t + VYt-1 + st. If X1 is increased by unit in period t, holding everything else constant, what is the expected increase in Yt+3 ? a. V231 C. V381 d.

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 Mathematics Questions!