Karenbrph1293 Karenbrph1293

24-05-2023
Business

contestada

We now add a lag of the dependent
variable to the model:
inft=β0+δ1inft-1+β1unemt+β2unemt-1+β3unemt-2+ut
Why does introducing the lag term violate the strict exogeneity
assumption? Demonstrat

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