About this document
Long-Run Consumption-Income Analysis by janetliu.everun is a document available to read on EtoBox.
The document analyzes the long-run relationship between consumption and income, determining that both series are integrated of order I(1) and establishing a cointegrating equation using the Johansen test. It also examines the VAR model for S&P 500 and Dow Jones indices, confirming stationarity and estimating impulse responses and Granger causality between the two indices. The findings indicate significant interdependencies and feedback effects between the growth rates of S&P 500 and Dow Jones.
- Author
- janetliu.everun
- Language
- EN