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[Consider the following model:] Y = B1 + B2X+ B3Xt-1 + $4X1-2+ B5X1-3 + u Where; Y= Penggunaan perbelanjaan [consumption expenditure] X = Pendapatan [income]

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[Consider the following model:] Y = B1 + B2X+ B3Xt-1 + $4X1-2+ B5X1-3 + u Where; Y= Penggunaan perbelanjaan [consumption expenditure] X = Pendapatan [income] t = Masa [time] This model states that consumption expenditure at time t is a linear function of income not only at time t but also of income in three previous time periods. Such models are called distributed lag models and represent what are called dynamic models (i.e., models involving change over time 1. Would you expect multicollinearity in such models and why? 2. How to detect the existence of multicollinearity? 3. How to detect the existence of multicollinearity

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