Figure 2 in the Appendix displays a plot of another time series X₁. The results of an ADL(1,1) model estimated on the full sample is given in Table 8. Interpret the dynamic effects of X, on Y, and critically evaluate

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c) Figure 2 in the Appendix displays a plot of another time series Xt. The
results of an ADL(1,1) model estimated on the full sample is given in
Table 8. Interpret the dynamic effects of X, on Y, and critically evaluate
the results of this regression model.
Transcribed Image Text:c) Figure 2 in the Appendix displays a plot of another time series Xt. The results of an ADL(1,1) model estimated on the full sample is given in Table 8. Interpret the dynamic effects of X, on Y, and critically evaluate the results of this regression model.
Figure 2
☆
8-
6-
4
2-
0-
-2
Table 8
. reg y L.y x L.x
Source I
100
Model | 431.259016
Residual I 512.201518
SS
Total I 943.460533
1
x |
y | Coefficient std. err.
y l
L1. I
.6757815
--. I .0535314
L1. I -.0235839
1
cons |
Line Graph of x
.0563387
df
3 143.753005
395 1.2967127
398 2.37050385
.0373755
.0531761
.0532054
I
200
Time
.1548425
MS
t
18.08
Number of obs
F (3, 395)
Prob > F
R-squared
Adj R-squared
Root MSE
P>|t|
0.000
1.01 0.315
-0.44 0.658
300
0.36 0.716
.6023017
- .0510122
-.1281851
=
=
=
-.2480798
=
T
400
[95% conf. interval]
399
110.86
0.0000
0.4571
0.4530
1.1387
.7492613
.158075
.0810174
.3607573
Transcribed Image Text:Figure 2 ☆ 8- 6- 4 2- 0- -2 Table 8 . reg y L.y x L.x Source I 100 Model | 431.259016 Residual I 512.201518 SS Total I 943.460533 1 x | y | Coefficient std. err. y l L1. I .6757815 --. I .0535314 L1. I -.0235839 1 cons | Line Graph of x .0563387 df 3 143.753005 395 1.2967127 398 2.37050385 .0373755 .0531761 .0532054 I 200 Time .1548425 MS t 18.08 Number of obs F (3, 395) Prob > F R-squared Adj R-squared Root MSE P>|t| 0.000 1.01 0.315 -0.44 0.658 300 0.36 0.716 .6023017 - .0510122 -.1281851 = = = -.2480798 = T 400 [95% conf. interval] 399 110.86 0.0000 0.4571 0.4530 1.1387 .7492613 .158075 .0810174 .3607573
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