Question: Update the data set on annual house prices and interest rates analyzed in Section 4.1.1. Compute the ACF and PACF functions of house prices, interest
Update the data set on annual house prices and interest rates analyzed in Section 4.1.1. Compute the ACF and PACF functions of house prices, interest rates, house price growth, and interest rate changes. Comment on the differences across autocorrelation functions. In which series do you find stronger time dependence?
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We present the ACFs and PACFs of house prices P interest rates R and their changes DP and DR in Figu... View full answer
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