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Let log( istanbul ) and log( mersin ) be the natural log of lemon prices in Istanbul and Mersin, respectively. Consider the following Error Correction
Let log( istanbul ) and log( mersin ) be the natural log of lemon prices in Istanbul and Mersin, respectively. Consider the following Error Correction Model (ECM): (0.025)(0.10)(0.062) where s^t1 is the lagged deviations from the long-run cointegration relationship. (Standard errors are in parentheses) Based on this fill in the blanks: The speed of adjustment estimate is ............ and it is statistically at 5% level. (5\% two-sided c.v. is 1.96)
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