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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.


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A unique numerical identifier assigned to U.S. citizens and some residents, primarily for tax reporting and social welfare benefits.

Left Frontal Lobe

The region of the frontal lobe situated in the left hemisphere of the brain, associated with reasoning, motor skills, higher level cognition, and expressive language.

Explicit Memories

Memories that can be consciously recalled and described, including knowledge of facts and experiences.

Hippocampus

A major component of the brain in humans and other vertebrates, involved in memory formation and spatial navigation.

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