Dyr

FIGURE 17.11 Inverted V distributed-lag model. Lag

17.20. The inverted V distributed-lag model. Consider the k-period finite distributed-lag model

Yt = a + ft0 Xt + ft1 Xt_1 + ft2 Xt_2 + ■ ■ ■ + ftkXt_k + ut

F. DeLeeuw has proposed the structure for the ft's as in Figure 17.11, where the ft's follow the inverted V shape. Assuming for simplicity that k (the maximum length of the lag) is an even number, and further assuming that ft0 and ftk are zero, DeLeeuw suggests the following scheme for the ft's*:

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