question archive An economic variable can be modeled by a first-order autoregression AR(1) system given by x1 = 0
An economic variable can be modeled by a first-order autoregression AR(1) system given by x1 = 0
Subject:EconomicsPrice: Bought3
An economic variable can be modeled by a first-order autoregression AR(1) system given by x1 = 0.4Xt-1 + Et. Suppose at timeT, a one-time shock of Et = 1 arrives to this variable. How much of the shock Et = 1 arriving at time T remains two periods after?
