Your Textbook Used a Distributed Lag Model with Only Current

question 42

Essay

Your textbook used a distributed lag model with only current and past values of Xt-1 coupled with an AR(1)error model to derive a quasi-difference model,where the error term was uncorrelated.
(a)Instead use a static model Yt = β0 + β1Xt + ut here,where the error term follows an AR(1).Derive the quasi difference form.Explain why in the case of the infeasible GLS estimators you could easily estimate the βs by OLS.
(b)Since φ1 (the autocorrelation parameter for ut)is unknown,describe the Cochrane-Orcutt estimation procedure.
(c)Explain how the iterated Cochrane-Orcutt estimator works in this situation.Iterations stop when there is "convergence" in the estimates.What do you think is meant by that?
(d)Your textbook has pointed out that the iterated Cochrane-Orcutt GLS estimator is in fact the nonlinear least squares estimator of the model.Given that -1 < φ1 < 1,suggest a "grid search" or some strategy to "nail down" the value of 1 which minimizes the sum of squared residuals.This is the so-called Hildreth-Lu method.

Understand the concept of instinctive drift and how biological predispositions can influence learned behavior.

Understand the concept of observational learning and its mechanisms.

Identify the role of mirror neurons in learning and empathy.

Recognize the impact of vicarious reinforcement and punishment on behavior.

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Definitions:

Food Availability

The presence and accessibility of food in a certain area, influenced by factors such as agriculture, distribution, and socioeconomic status.

Experience Of Hunger

The physical and psychological sensation that motivates the desire to eat, influenced by biological, social, and emotional factors.

Greater Variety

The availability or presence of a wide range of different options or items, often considered beneficial in decision-making or dietary context.

Same-sex Attraction

An emotional, romantic, or sexual attraction to individuals of the same gender.