Answer Happy

1. Fill in the table with appropriate answers. Comment the table below based on your understanding on unit root test. Provide the hypothesis and decision rule. n MW Table 1: ADF unit root test results Test Critical Variable Test Critical statistics Id) Variable i(d) values statistics values d -3.6061 [C.7.4] -3.4696 d -3.0189 [3]* -1.9446 9 0.3962 [8] -1.9449 9 -3.8564 [4]* -1.9446 -1.8632 (C.3] -2.8996 -8.0729 [2]* -1.9445 mp -3.2719 [C,1] -2.8986 mp -3.8595 (C.T.6]* -3.4721 br -1.5576 [2] -1.9445 br -8.6395 [1]* -1.9445 lp -0.2272 [2] -1.9445 lp -8.8544 (0' -1.9445 Notes: d, log of manpower demand; q, log of construction output, rw. log of real wage; mp, log of material price; br, log(1+interest rate): Ip, log of labour productivity. is the first difference operator. The content of the brackets [ ] denotes constant, trend and the order of augmentation of the ADF test equation, respectively. * denotes rejection of the null at the 5% significance level.