Interpreting Engle Granger cointegration test results
Posted: Mon Apr 18, 2016 1:26 pm
I have attached the results of the test. My variables are: industrial production, petroleum prod. and steel prod. (all in logs).
I understand that I can reject the null hypothesis only when "steel" is the depended variable, but what does that mean? Are the 3 of them cointegrated or not?
Thank you for your help!
Ps. I understand that this is too basic and probably I should be able to figure it out my self, but I ask for your understanding as I am still an undergraduate!
I understand that I can reject the null hypothesis only when "steel" is the depended variable, but what does that mean? Are the 3 of them cointegrated or not?
Thank you for your help!
Ps. I understand that this is too basic and probably I should be able to figure it out my self, but I ask for your understanding as I am still an undergraduate!