Augmented dicky-fuller test, Macroeconomics

Assignment Help:

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.


Related Discussions:- Augmented dicky-fuller test

International trade, what are the limits of the trade between franci and ga...

what are the limits of the trade between franci and galacia

Calculate the total cost and minimum cost, Consider a hospital that produce...

Consider a hospital that produces output (Q) and has two production inputs, nurse-hours (N) and beds (B). the hospital faces input costs of W N = 15 and W B = 25. Assume the h

Full economic price of this legislation, From California to New York, legis...

From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 mill

Two-period model, Suppose that a household in a two-period model has incom...

Suppose that a household in a two-period model has income of $30,000 in period 1 and $25,000 in period 2, and the interest rate is 75 percent. Assume that the price of the good is

What is money wage rate, What is money wage rate While the money wage ...

What is money wage rate While the money wage rate or nominal wage rate is the hourly wage rate calculated in money that a worker receives for supplying labour, the real wage r

Firm''s output at various levels of employment, Use the following data for ...

Use the following data for a firm's output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (b) its (MPPL/MRCL) schedule

Are credit cards, It is sometimes asked whether credit cards are money sinc...

It is sometimes asked whether credit cards are money since many purchases are made using these. Credit cards are a means of obtaining credit and using this to finance expenditure,

The circular flow of income in a closed economy, The circular flow of incom...

The circular flow of income in a closed economy   A closed economy exists when there is no international trade. We shall also assume that in this particular closed economy there

Employees'' productivity, what measures should be taken to raise the produc...

what measures should be taken to raise the productivity of the workers?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd