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Estimate a var model with one lag compute the

Question: For the data in Table:

(a) Estimate a regression of HS on y and RR.

(b) Estimate a VAR model with one lag. Compute the characteristic roots. Test for cointegration and estimate the cointegrating vectors, if any.

(d) Repeat the analysis with residuals from a regression of the raw data on quarterly dummies.

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Engineering Mathematics: Estimate a var model with one lag compute the

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