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(Solved): Subject: econometrics
question:
Task is to perform Engle-granger method and the johansen method
to p ...
Subject: econometrics
question:
Task is to perform Engle-granger method and the johansen method
to prove PPP isn't there in trade between Turkey and Germany in
last 10 years.
Explanation in Details (where mathematical data/equation need put
also).
Solution Step 1 We need to use both the Engle-Granger approach and the Johansen method to check for the existence of the PPP between Germany and Turkey. Step 2 The Engle-Granger approach checks to see if two variables have a cointegrating connection.