Consider the Distributed Lag Model Yt = β0 + β1Xt

question 29

Multiple Choice

Consider the distributed lag model Yt = β0 + β1Xt + β2Xt-1 + β3Xt-2 + … + βr+1Xt-r + ut.The dynamic causal effect is

• A)β0 + β1
• B)β1 + β2+…+βr+1
• C)β0 + β1+…+βr+1
• D)β1

---

Definitions:

European Union

A political and economic union of 27 member states that are located primarily in Europe, which operates through a system of supranational institutions and intergovernmental negotiated decisions.

Weeks Of Vacation

Relates to the amount of time allocated for rest, travel, or leisure activities away from work or daily routines.

Workers

Individuals engaged in any form of work, paid or unpaid, or contributing labor to a task or job.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, known for its rich cultural heritage and history.