Augmented dicky-fuller test, Macroeconomics

The hypotheses are:

1351_Augmented Dicky-Fuller Test.png

The null hypothesis,  infers that a unit root exists, whereas the alternative hypothesis,  concludes that there is no root.

Decision rule:

If t* > ADF critical value, -> not reject null hypothesis, i.e., unit root exists.

If t* < ADF critical value, ->   reject null hypothesis, i.e., unit root does not exist.

An important note is that during these tests, there was no differencing. This would have removed potentially vital information from the results.

Posted Date: 4/13/2013 5:36:32 AM | Location : United States







Related Discussions:- Augmented dicky-fuller test, Assignment Help, Ask Question on Augmented dicky-fuller test, Get Answer, Expert's Help, Augmented dicky-fuller test Discussions

Write discussion on Augmented dicky-fuller test
Your posts are moderated
Related Questions
what reasons limit the bargaining power of trade union in developing countries

Each day millions of Americans purchase millions of goods and services. These goods and services are generally readily available, as long as you have the necessary money to purchas

While referring to the "EYE on YOUR LIFE" section on, discuss the macroeconomic policy issues facing the U.S. economy today based on the economic concepts you have learned in this

Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 14.6 we describe the simulation of 15 generator breakdowns

I want to know price and estimate time on this assignment.

Minimum wage laws are common in many countries. The debate over minimum wage includes claims about the impact of this action on employment levels and wage levels. What impact does

Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 12% and a standard deviation of 17%. B has an expected rate of return of

Explain the excise terms of tax. The excise terms of tax: a. Tax incidence b. Excess burden c. Deadweight loss d. Tax revenue

Explain the pre-emptive monetary policy Since 1992 UK monetary policy has been 'pre-emptive'. In pre-emptive monetary policy authorities announce that they are prepared to rai

Suppose the consumption function is C = $500 billion + 0.55Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially