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Consider the dynamic regression model: Vt = 1.5 + 0.5yt-1 + 1.4xt + 0.7xt-1 + &t At time t*, there is a step intervention of

Consider the dynamic regression model:

Vt = 1.5 + 0.5yt-1 + 1.4xt + 0.7xt-1 + &t At time t*, there is a step intervention of one-unit increase in x, which means that x remains one unit higher permanently since time t*

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