When Xt is strictly exogenous,the following estimator(s)of dynamic causal effects are available:
A)estimating an ADL model and calculating the dynamic multipliers from the estimated ADL coefficients
B)using GLS to estimate the coefficients of the distributed lag model
C)neither (a)or (b)
D)(a)and (b)

Question

Quizplus · Accepted Answer

Both options (a) and (b) are available when Xt is strictly exogenous, as they both utilize the distributed lag model. Option (a) estimates the ADL coefficients and calculates dynamic multipliers, while option (b) estimates the coefficients directly using GLS. Both options allow for estimation of dynamic causal effects.

When Xt Is Strictly Exogenous,the Following Estimator(s)of Dynamic Causal Effects