mitch3354 mitch3354

24-05-2023
Mathematics

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Consider the following ARDL(1,1) model y = 11 +0.7y-1 + 9x+ + 2xt-1 + ut where both y, and xe are () processes and u, is a white noise process. Calculate the effect of a temporary shock in x at time ton y at time t, t+1, and t+2.

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