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f) I performed the Engle-Granger test and the results are reported below. At the 10% significance level, what ian you infer about the test result?
f) I performed the Engle-Granger test and the results are reported below. At the 10% significance level, what ian you infer about the test result? [2] Date: 09/26/21 Time: 18:41 Series: LCP LEXRATE Sample: 2010M02 2021M08 ncluded observations: 139 Cointegrating equation deterministics: C @TREND Automatic lags specification based on Schwarz criterion (maxlag=13) MacKinnon (1996) p-values. g) Given your findings in part (f), what can you say about your answer in part (e)? [2] h) Is the sign of the coefficient on LCP in part (e) regression result consistent with economic intuition? Explain. [2] f) I performed the Engle-Granger test and the results are reported below. At the 10% significance level, what ian you infer about the test result? [2] Date: 09/26/21 Time: 18:41 Series: LCP LEXRATE Sample: 2010M02 2021M08 ncluded observations: 139 Cointegrating equation deterministics: C @TREND Automatic lags specification based on Schwarz criterion (maxlag=13) MacKinnon (1996) p-values. g) Given your findings in part (f), what can you say about your answer in part (e)? [2] h) Is the sign of the coefficient on LCP in part (e) regression result consistent with economic intuition? Explain. [2]
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