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The data base contains quarterly time series of the following variables:
M nominal M1,
Y real gross domestic product (GDP),
P the GDP deflator,
R the three-month interest rate,

The first three time series are seasonally adjusted and normalized such that 1960Q1 = 100.
(2) Your task is to write a short paper (no longer than 6 pages including tables and figures, font
size > 10pt) proposing a congruent dynamic econometric model of the money demand function
in Scirtemonoce along the lines discussed in the course for the UKM1 data set.

Your analysis should include the following points:
a short introduction including data discussion, transformations and plots;
ADF unit root tests to identify the integration properties of times series ;
an autoregressive distributed-lag model of real money demand, (m - p)t, conditional on
current and past values of yt, Rt and pt as well as its own history;
– lag order determination
– misspecification tests;
– the short and long-run elasticities of money demand with regard to income, inflation
and the interest rate.
– the stability of money demand function (cointegration);
– the static long-run equilibrium and deviation of money demand from it over time;
the equilibrium-correction model.

Hello everyone, we have been given this project to do... I would understand how to interpret the results but I can not workout how to run all of this in EViews.

Hey,
I am doing a similar project this year and was wondering how you put your ECM into eviews?

Hi,

I would be interested in the project. Are you considering taking any outside help, especially with regard to model construction.