Vector Error Correction Models - LearnEconometrics.com
series are nonstationary in levels, their cointegration is explored. In each case, the null hypothesis of nonstationarity cannot be rejected at any reasonable level of significance. Next, estimate the cointegrating equation using least squares. Notice that the cointegrating relationship does not include a constant. -1 0 1 2 1970q1 1980q1 1990q1 ...
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