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Unformatted text preview: root or no unit root) 2. Run a regression of the oil price on the lag of the oil price. (a) What value do you obtain for the slope coecient (i.e., ?) (b) Does this value suggest a unit root in the series, or no unit root? (Answer unit root or no unit root) 3. Run a regression of the approval rating on the oil price. What is the t-value for the slope? 4. Create the rst dierences of the approval rating and the oil price. Run a regression of the rst dierence of the approval rating on the rst dierence of the oil price. What is the t-value for the slope? 1...
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This note was uploaded on 07/17/2008 for the course ECON 642 taught by Professor De jong during the Spring '08 term at Ohio State.
- Spring '08
- DE JONG