Null Hypothesis: D(UR) has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=7) Augmented Dickey-Fuller test statistic Test critical values: 1% level 5% level 10% level *MacKinnon (1996) one-sided p-values. Augmented Dickey-Fuller Test Equation Dependent Variable: D(UR,2) Method: Least Squares Date: 10/30/22 Time: 12:09 Sample (adjusted): 1993 2021 Included observations: 29 after adjustments Variable D(UR(-1)) с R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient Std. Error -0.968343 0.169238 -4.865252 t-Statistic -5.721785 -3.679322 -2.967767 -2.622989 t-Statistic -5.721785 4.736333 -1.027219 Mean dependent var S.D. dependent var 0.548033 0.531293 25.37571 Akaike info criterion 17386.01 Schwarz criterion -133.8930 Hannan-Quinn criter. 32.73883 Durbin-Watson stat 0.000004 Prob.* 0.0001 Prob. 0.0000 0.3134 -2.130192 37.06529 9.371934 9.466230 9.401466 2.102246

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Interpret the generated results at 5% level of significance. 

Null Hypothesis: D(UR) has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic - based on SIC, maxlag=7)
Augmented Dickey-Fuller test statistic
Test critical values:
1% level
5% level
10% level
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(UR,2)
Method: Least Squares
Date: 10/30/22 Time: 12:09
Sample (adjusted): 1993 2021
Included observations: 29 after adjustments
Variable
D(UR(-1))
с
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
Coefficient Std. Error
t-Statistic
-5.721785
-3.679322
-2.967767
-2.622989
t-Statistic
-0.968343 0.169238
-5.721785
-4.865252 4.736333 -1.027219
Mean dependent var
S.D. dependent var
0.548033
0.531293
25.37571
Akaike info criterion
17386.01 Schwarz criterion
-133.8930 Hannan-Quinn criter.
32.73883 Durbin-Watson stat
0.000004
Prob.*
0.0001
Prob.
0.0000
0.3134
-2.130192
37.06529
9.371934
9.466230
9.401466
2.102246
Transcribed Image Text:Null Hypothesis: D(UR) has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=7) Augmented Dickey-Fuller test statistic Test critical values: 1% level 5% level 10% level *MacKinnon (1996) one-sided p-values. Augmented Dickey-Fuller Test Equation Dependent Variable: D(UR,2) Method: Least Squares Date: 10/30/22 Time: 12:09 Sample (adjusted): 1993 2021 Included observations: 29 after adjustments Variable D(UR(-1)) с R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient Std. Error t-Statistic -5.721785 -3.679322 -2.967767 -2.622989 t-Statistic -0.968343 0.169238 -5.721785 -4.865252 4.736333 -1.027219 Mean dependent var S.D. dependent var 0.548033 0.531293 25.37571 Akaike info criterion 17386.01 Schwarz criterion -133.8930 Hannan-Quinn criter. 32.73883 Durbin-Watson stat 0.000004 Prob.* 0.0001 Prob. 0.0000 0.3134 -2.130192 37.06529 9.371934 9.466230 9.401466 2.102246
Expert Solution
Step 1

From the first table, we see that the p-value of Augmented Dickey Fuller test is 0.0001 which is less than 0.05 level of significance. 
So we reject null hypothesis hence D(UR) do not have a unit root.

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