Figure 2. Recursive Normalized Trace Statistic for G7 Countries, 18/03/1996-20/01/2005
Notes. The figure shows values of the rescaled recursive trace statistic of Hansen and Johansen (1993) for Ho: r=0
(no cointegration) against H1: r=1 (one cointegration relation in the system), rescaled by the 10 % critical value. The
values of the statistic above one (above the horizontal line) indicate presence of a cointegration relationship.
31
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