Your Textbook Presents as an Example of a Distributed Lag

question 36

Essay

Your textbook presents as an example of a distributed lag regression the effect of the weather on the price of orange juice. The authors mention U.S. income and Australian exports, oil prices and inflation, monetary policy and inflation, and the Phillips curve as other candidates for distributed lag regression. Briefly discuss whether or not the exogeneity assumption is likely to hold in each of these cases. Explain why it is so hard to come up with good examples of distributed lag regressions in economics.

---

Definitions:

Mastered

Having acquired complete knowledge or skill in a particular area or subject.

On-the-Job Training

Practical training provided to employees at their workplace while they are doing the actual job.

Misused Method

A technique or process that is applied inappropriately or ineffectively, leading to suboptimal results.

Career Launch

The initial phase of starting one’s professional journey, often involving finding the first job or entering a new industry.