Consider the dynamic regression model: Yt = 1.5 + 0.5yt-1 + 1.4x¢ + 0.7xt-1 + &¢ 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*. (a) Identify the estimated effect on y at t*, t* + 1, and t* + 2.
Consider the dynamic regression model: Yt = 1.5 + 0.5yt-1 + 1.4x¢ + 0.7xt-1 + &¢ 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*. (a) Identify the estimated effect on y at t*, t* + 1, and t* + 2.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 9T
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Question
Consider the dynamic regression model:
???? = 1.5 + 0.5????−1 + 1.4???? + 0.7????−1 + ????
At time ??∗, there is a step intervention of one-unit increase in ??, which means that ??
remains one unit higher permanently since time ??∗.
(a) Identify the estimated effect on ?? at ??∗,??∗ + 1, and ??∗ + 2
![Consider the dynamic regression model:
Yt = 1.5 + 0.5yt-1 + 1.4xt + 0.7x;-1+ Et
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*.
(a)
Identify the estimated effect on y at t*, t* + 1, and t* + 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9aba9d0e-2402-4f8f-907e-45ea34573fa6%2F67d326fc-a123-44db-b13a-2eaea10e0e6e%2F7nczhtb_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the dynamic regression model:
Yt = 1.5 + 0.5yt-1 + 1.4xt + 0.7x;-1+ Et
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*.
(a)
Identify the estimated effect on y at t*, t* + 1, and t* + 2.
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