Use the data in HSEINV.RAW for this exercise. (i) Test for a unit root in log(mvpc), including
Question:
(i) Test for a unit root in log(mvpc), including a linear time trend and two lags of Δlog(invpcr). Use a 5% significance level.
(ii) Use the approach from part (i) to test for a unit root in log(price).
(iii) Given the outcomes in parts (i) and (ii), does it make sense to test for cointegration between log(mypc) and log(price)?
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11 111 We run the regression ginvpc 786 956 loginvpc1 0068 t 170 198 0021 532 ginvpc1 290 ginvpct2 1...View the full answer
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Related Book For
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
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