Get ECON8040 Applied Econometrics Question And Answer Help From MBA Experts houses the best online assignment experts in Australia. We provide exclusive online assignment help to Canberra, Melbourne, Darwin students. We cover a lot of subjects and even provide the best finance and accounting assignment help. You can buy assignments Writing help online from us at the cheapest rates.




Assignment Details:

  • Referencing Styles: Open 
  • Words: 1750
  • Course Code: ECON8040
  • Course Title: applied econometrics
  • University: Macquarie University
  • Country: AU


At the beginning of your report, briefly explain how you prepared your data files, especially demonstrating their originality.

Answer the following questions using the 188 quarterly observations (Q3/1972 ‒ Q2/2019) on

Q1. Visual Checking Plot each of the six variables against time, and obtain ACF and PACF plots. Comment on the plots, ACFs and PACFs, with regard to the trend and stationarity/non‐stationarity of the series.

Q2. Order of Integration Determines the orders of integration for the variables using the Augmented Dickey‐Fuller (ADF) test procedure at 5%. For the tests, set the maximum lag order to 8 and select “test down” from it using the AIC to determine the optimum number of lags. Include constant, and constant and trend for the tests as necessary.

• Make sure you test for I(1) vs I(0) as well as I(2) vs I(1),

Q3 Engle-Granger cointegration Test for cointegration test among the six variables LTHPI, Rate, LRGDIPC, LUN, LCPI and LHSTOCKPC using the Engle-Granger test.

Q4 Economic Interpretation of a long-run relationship

• Explain why you would expect a long-run relationship between those six variables.
• Interpret the estimated coefficients of the explanatory variable.
• Are the signs and magnitudes of the estimated coefficients according to intuition?
• Comment on the cointegration relationship in light of the economic events that happened during the sample period, paying attention to the signs of the coefficients.