15.11 Suppose that a(L) = (1 - fL), with 0 f1 0 6 1, and b(L) =...

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15.11 Suppose that a(L) = (1 - fL), with 0 f1 0 6 1, and b(L) = 1 + fL +

f2L2 + f3L3c.

a. Show that the product b(L)a(L) = 1, so that b(L) = a(L) - 1.

b. Why is the restriction 0 f1 0 6 1 important?

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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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15.11 Suppose that a(L) = (1 - fL), with 0 f1 0 6 1, and b(L) = 1 + fL + f2L2 + f3L3c. a. Show that the product b(L)a(L) = 1, so that b(L) = a(L) - 1. b. Why is the restriction 0 f1 0 6 1 important?
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15.11 Suppose that a(L) = (1 - fL), with 0 f1 0 6 1, and b(L) =...

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Introduction To Econometrics

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