Your Textbook Presents as an Example of a Distributed Lag

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 potential candidates for distributed lag regression. You are considering estimating the effect of minimum wages on teenage employment (employment population ratio)using a time series of U.S. data. Write a short essay on whether a distributed lag model would be a suitable tool to figure out dynamic causal effects in this case.