Think of at least five examples from economics where theory suggests that the variables involved are cointegrated. For one of these cases, explain how you would test for cointegration between the variables involved and how you could use this information to improve forecasting.
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Q16: If Xt and Yt are cointegrated, then
Q17: The order of integration
A)can never be zero.
B)is
Q18: A VAR allows you to test joint
Q19: You can determine the lag lengths in
Q20: In a VECM,
A)past values of Yt -
Q22: Consider the GARCH(1,1)model
Q23: The BIC for the VAR is
A)BIC(p)=
Q24: The EG-ADF test
A)is the similar to the
Q25: You have collected quarterly data on inflation
Q26: A VAR with k time series variables
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