15.10 Consider the ADL model Yt = 5.3 + 0.2Yt - 1 + 1.5Xt - 0.1Xt -...

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15.10 Consider the ADL model Yt = 5.3 + 0.2Yt - 1 + 1.5Xt - 0.1Xt - 1 + u t, where Xt is strictly exogenous.

a. Derive the impact effect of X on Y.

b. Derive the first five dynamic multipliers.

c. Derive the first five cumulative multipliers.

d. Derive the long-run cumulative dynamic multiplier.

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Introduction To Econometrics

ISBN: 9781292071367

3rd Global Edition

Authors: James Stock, Mark Watson

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Question Posted: Oct 26, 2024 02:00 AM

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15.10 Consider the ADL model Yt = 5.3 + 0.2Yt - 1 + 1.5Xt - 0.1Xt - 1 + u t, where Xt is strictly exogenous. a. Derive the impact effect of X on Y. b. Derive the first five dynamic multipliers. c....
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15.10 Consider the ADL model Yt = 5.3 + 0.2Yt - 1 + 1.5Xt - 0.1Xt -...

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Introduction To Econometrics

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