Question: Show why a model with a lagged dependent variable is biased but consistent when ut is not autocorrelated. 2) Biased and Inconsistent Show why a

Show why a model with a lagged dependent variable is biased

Show why a model with a lagged dependent variable is biased but consistent when ut is not autocorrelated. 2) Biased and Inconsistent Show why a model with a lagged dependent variable is biased and inconsistent when ut is autocorrelated. 3) Long-run Effects Calculate the long-run (total) effect of a one-time, one unit jump in xt on y for each of these models. 3a) yt=.8+1.2xt+.4zt+ut 3b) yt=.8+.6xt+.2zt+.2xt1+ut 3c) yt=.8+.6xt+1.1zt+.5yt1+ut Show why a model with a lagged dependent variable is biased but consistent when ut is not autocorrelated. 2) Biased and Inconsistent Show why a model with a lagged dependent variable is biased and inconsistent when ut is autocorrelated. 3) Long-run Effects Calculate the long-run (total) effect of a one-time, one unit jump in xt on y for each of these models. 3a) yt=.8+1.2xt+.4zt+ut 3b) yt=.8+.6xt+.2zt+.2xt1+ut 3c) yt=.8+.6xt+1.1zt+.5yt1+ut

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