Illustration Of The Almon Distributedlag Model

To illustrate the Almon technique, Table 17.6 gives data on inventories Y and sales X for the United States for the period 1954-1999.

For illustrative purposes, assume that inventories depend on sales in the current year and in the preceding 3 years as follows:

Yt = a + ßoXt + ßi Xt-i + ß2 Xt-2 + ß3Xt-3 + ut (17.13.11)

Furthermore, assume that ß, can be approximated by a second-degree polynomial as shown in (17.13.2). Then, following (17.13.5), we may write where

Was this article helpful?

0 0
Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.

Get My Free Ebook

Post a comment