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long runn movement

Posted: Wed Sep 14, 2011 6:38 pm
by dimitris
hello! i have time series of unemployment rate and inflation rate!. and i want to determine whether a long-run relationship and short-run exists....

by the ADF test the 2 variables are stationary in their levels...

what should i do now to finf if a long run relationship exists??/ can i do cointegration test?? and then what?


thxn in adnvance