Regardless of your test outcomes in Question 4, let us assume that all of these time series are of I(1). a) Run the regression of logRP against logRD, and logRE (including the intercept term). [3 marks] b) Conduct the test for cointegration using the ADF test. [3 marks] c) Depending on the outcome of the test, interpret the long-run relationship implied by the regression results. [4 marks] Notes: In Eviews, the residuals from a regression are stored in the variable called reside after you run the regression. Hence, straight after you run the regression, click Genr and write e = resid before you click OK. Then, the residuals from the regression are stored in the variable called e. The critical values for the unit root test for the residuals are given in the lecture notes. If you find the time series to be co-integrated in Question 5, estimate the following error- correction model: Alog RPt = 1 + Viet-1 + Blog RPt-1 + B2log RDt-1 + B3Alog REt-1 + uit Alog RDt = a2 + 12et-1 + BAAlog RPt-1 + Blog RDt-1 + BeAlog REt-1 + uzt Alog REt = a3 + 13et-1 + ByAlog RPt-1 + BeAlog RDt-1 + BgAlog REt-1 + Uzt where e represents the residual from the co-integrating regression. If you find the time series not to be co-integrated, estimate the following short-run model: A log RPt = a1 + Blog RPt-1 + B2Alog RDt-1 + B3Alog REt-1 + Wit Alog RDt = @2 + Blog RPt-1 + Blog RDt-1 + Blog REt-1 + U2t A log REt = Q3 + B,Alog RPt-1 + Blog RDt-1 + B,Alog RE-1 + Uzt In Eviews, AXt-1 is be represented as d(X(-1)); and Xt-1 as X(-1)