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The following questions will refer to the simple auto-regressive time series model presented below: Yt= + pyt-1 + U a) If the auto-regressive coefficient
The following questions will refer to the simple auto-regressive time series model presented below: Yt= + pyt-1 + U a) If the auto-regressive coefficient is equal to 0.7, what do we know about the dependence between y, and yt-1 b) If the auto-regressive coefficient is >0 and 1, is there a long run equilibrium? Explain.
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
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