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Suppose that X, and Y, are integrated of order one. X, and Y are said to be cointegrated if, for some cointegrating coefficient 0, is

Suppose that X, and Y, are integrated of order one. X, and Y are said to be cointegrated if, for some cointegrating coefficient 0, is integrated of order A vector error correction model is model of augmented to include the lagged error correction term.\fder one zero

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