The data file okun5_aus contains quarterly observations on the Australian unemployment rate ((U)), and the Australian GDP

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The data file okun5_aus contains quarterly observations on the Australian unemployment rate \((U)\), and the Australian GDP growth rate \((G)\) from 1978Q2 to 2016Q2. Plot these series and perform unit root tests on them to assess whether or not they are stationary. In your answer, justify your choice of a test equation, present the results from estimating that equation, state the null and alternative hypotheses, and draw a conclusion. Use a 5\% significance level. What are the orders of integration of the two series?

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Related Book For  book-img-for-question

Principles Of Econometrics

ISBN: 9781118452271

5th Edition

Authors: R Carter Hill, William E Griffiths, Guay C Lim

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