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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
c10Â Â Â Â Consider the model estimated in (10.15); use the data in INTDEF.RAW.
(i)Â Â Â Â Â Â Find the correlation between inf and def over this sample period and comment.
(ii)Â Â Â Â Â Add a single lag of inf and def to the equation and report the results in the usual form.
(iii)Â Â Â Compare the estimated LRP for the effect of inflation with that in equation (10.15). Are they vastly different?
(iv)Â Â Â Are the two lags in the model jointly significant at the 5% level?
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