Multiple Choice
In a VECM,
A) past values of Yt - θ Xt help to predict future values of ΔYt and/or ΔXt.
B) errors are corrected for serial correlation using the Cochrane-Orcutt method.
C) current values of Yt - θ Xt help to predict future values of ΔYt and/or ΔXt.
D) VAR techniques, such as information criteria, no longer apply.
Correct Answer:
Verified
Correct Answer:
Verified
Q40: The error term in a multiperiod regression<br>A)is
Q41: Using the ADL(1,1)regression Y<sub>t</sub> = ?<sub>0</sub>
Q42: The following is not a consequence of
Q43: If Y<sub>t</sub> is I(2), then<br>A)Δ2Y<sub>t</sub> is stationary.<br>B)Y<sub>t</sub>
Q44: The biggest conceptual difference between using VARs
Q45: You have collected quarterly data on inflation
Q46: Consider the following model Y<sub>t</sub> =
Q48: Economic theory suggests that the law
Q49: A VAR allows you to test joint
Q50: You can determine the lag lengths in