From the preceding discussion it is clear that the median and mean lags serve as a summary measure of the speed with which Y responds to X. In the example given in Table 17.1 the mean lag is about 11 quarters, showing that it takes quite some time, on the average, for the effect of changes in the money supply to be felt on price changes.
Gujarati: Basic I III. Topics in Econometrics I 17. Dynamic Econometric I I © The McGraw-Hill
Econometrics, Fourth Models: Autoregressive Companies, 2004 Edition and Distributed-Lag
CHAPTER SEVENTEEN: DYNAMIC ECONOMETRIC MODELS 669
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