Find out if the GDP and money supply time series given in Table 11-7 (on the book's
Question:
Find out if the GDP and money supply time series given in Table 11-7 (on the book's website) are individually stationary. If not, are their first differences stationary? Are the two time series cointegrated? Show the necessary calculations.
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Step by Step Answer:
To find out if the GDP time series is individually stationary we perform the DickeyFuller test and the Augmented DickeyFuller test with 2 lags Stata r...View the full answer
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