If you concluded in part a above that the two variables are


Q2. a) Perform the Engle-Granger test for cointegration on PriCon and PerDisInc. What do you conclude? 

b) If you concluded in part (a) above that the two variables are CI(1,1), estimate the long-run equilibrium relationship between PriCon and PerDisInc by the DOLS and FMOLS methods. Briefly comment on the results.


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Basic Statistics: If you concluded in part a above that the two variables are
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