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APPLIED ECONO > Q4 > Flashcards

Q4 Flashcards

1
Q

What is the SR equation

A

Change LnX1 = A1 + A2lnX2 + A3Ut-1 + Vt

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2
Q

What is Vt in SR equation?

A

White noise term

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3
Q

What is Change in SR equation?

A

First difference operator

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4
Q

What is Ut-1 in SR equation?

A

Lagged value of error correction term

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5
Q

What does A2 mean in SR equation?

A

Gives immediate relationship of change in X1 on change in X2!

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APPLIED ECONO (4 decks)

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