Null hypothesis of no cointegration

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Questions

1. Explain how you could test the null hypothesis of no cointegration between two time series variables.

2. Explain what is meant by `spurious regression'. In what sense should empirical analysis be cautious of it?

3. Discuss how the difference-in-difference (DID) estimator (specify the DID regression model) might be used to test for a potential treatment effect of a policy reform. Outline the key assumptions for the DID estimation. Use graphs where necessary.

Reference no: EM133373439

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