Why does the Johansen procedure test the null hypothesis of rank r = 0 first? a. To

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Why does the Johansen procedure test the null hypothesis of rank r = 0 first? a. To determine if any cointegrating relationship exists before testing for the exact number b. To avoid testing higher ranks unnecessarily c. To speed up the testing process d. To ensure that the test is statistically valid

Posted Date: May 19, 2024 11:04 AM

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Why does the Johansen procedure test the null hypothesis of rank r = 0 first? a. To

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