In particular, this method is used to analyze the long-run relations among PROD, NEXPR, and WD, and PROD, NEXPR, and MSLR, as well as PROD, NEXPR, and MULR. All the test results are summarized in Table 2.
At the same time, it is evident that PROD, MULR, and NEXPR are not cointegrated.
With the single exception of the MULR variable, this inclusion did not render the level data stationary.
[Graph omitted] TABLE 1 Augmented Dickey-Fuller Test Results for MSLR, MULR, NEXPR, PROD, and WD Variable Test Results MSLR (a) -0.016 MSLR (b) -4.500 (*) MULR (a) -1.934 MULR (b) -4.364 (*) NEXPR (a) -0.979 NEXPR (b) -3.411 (*) PROD (a) -0.541 PROD (b) -4.130 (*) WD (a) 0.489 WD (b) -3.129 (*) (a)ADF test results for the levels of variables.
Clear empirical evidence of cointegration among NEX PR , MSLR, and MULR exists.
VEC modeling provides information on the short-run relationships among any two or more cointegrated variables, such as NEXPR and WD, and NEXPR, MSLR, and MULR. VEC modeling determines whether the system under investigation is in short-run equilibrium or in disequilibrium.
This modeling includes all three test variables, NEXPR, MSLR, and MULR. Given the fact that these variables were found to be cointegrated, a trivariate VEC model can be estimated.
Compare: Shipra Chordia, Andrew Lynch and George Williams, 'Williams v Commonwealth--Commonwealth Executive Power and Australian Federalism' (2013) 37(1) MULR 189, 225-6.
See: Gabrielle Appleby and Stephen McDonald, 'Looking at the Executive Power through the High Court's New Spectacles' (2013) 35 Sydney Law Review 253, 262 and 275; Shipra Chordia, Andrew Lynch and George Williams, ' Williams v Commonwealth - Commonwealth Executive Power and Australian Federalism' (2013) 37(1) MULR 189, 220, fn 187.