ABSTRACT
A distributed lag model occurs when one or more of the independent variables is lagged one or more periods:
There are several justifications for using lagged explanatory variables. For stanc t
hesis (PIH) offers an interesting application of a
e
pected
The difficulty is that EXDPI is hard to measure especially for aggregate data. One pts to approximate EXDPI was to use the pattern of past and current
come
a proxy for expected future income. If the gged values of DPI are significant, then the PIH is supported.
