In the Distributed Lag Model, the Dynamic Causal Effect

question 27

Multiple Choice

In the distributed lag model, the dynamic causal effect

• A)is the sequence of coefficients on the current and lagged values of X.
• B)is not the same as the dynamic multiplier.
• C)is generated by choosing different truncation points for the HAC standard errors.
• D)requires estimation of the model by Cochrane-Orcutt method.

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Definitions:

Confidence Interval

A span of numbers obtained from sample data which is expected to encompass the value of a not yet known population characteristic, specified with a defined degree of certainty.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or calculation, affecting the shape of the distribution.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Population Mean

The average of a set of characteristics (e.g., values or measurements) of every member in a population.