In a VECM, A $Y _ { t } - \theta X _ { t }$

question 18

Short Answer

In a VECM, a. past values of $Y _ { t } - \theta X _ { t }$ help to predict future values of $\Delta Y _ { t }$ and/or $\Delta X _ { t }$ .
b. errors are corrected for serial correlation using the Cochrane-Orcutt method.
c. current values of $Y _ { t } - \theta X _ { t }$ help to predict future values of $\Delta Y _ { t }$ and/or $\Delta X _ { t }$ .
d. VAR techniques, such as information criteria, no longer apply.

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Definitions:

Cornea

A transparent layer forming the front of the eye, serving as a protective covering and playing a crucial role in focusing vision.

Color Blind

A condition in which an individual has difficulty distinguishing between certain colors, due to deficiencies in the color-sensing cones in the eye.

Fovea

A minuscule dip in the retina of the eye that is the location of the greatest visual sharpness.

Blind Spot

An area in the field of vision that is not detected by the eye, where the optic nerve connects to the retina, or metaphorically, an area of ignorance or lack of awareness.