The name is absent



Spriggs, 1991, Zanias 1998, Saghaian, Reed and Marchant 2002). However, Bessler (1984),
Grennes and Lapp (1986) Robertson and Orden (1990), and Cho et al. (2004) found that
relative agricultural prices are not affected by nominal macroeconomic variables. These
studies also show that although short run effects of money changes may be different, long run
effect are equal supporting the long-run neutrality of money (Ardeni and Rausser 1995).
However, Saghaian et al. (2002) results reject the hypothesis of the long-run neutrality of
money. It should be noted that these results should be interpreted only with care. First, time-
series studies of links between the agriculture and the rest of economy are often sensitive to
variable choices. Second, as Ardeni and Freebairn (2002) pointed out, many studies lack an
appropriate treatment of the time series properties of data implying misleading results
especially on the case of earlier research. Finally, the main feature of the literature is that
many studies do not relate directly a specific macroeconomic model, except Saghaian et al.
(2002), rather they use a set of explanatory variables suggested by previous studies.

3. Empirical Procedure

Even as many individual time series contain stochastic trends (i.e. they are not stationary at
levels), many of them tend to move together on long run, suggesting the existence of a long
run equilibrium relationship. Two or more non-stationary variables are cointegrated if there
exists one or more linear combinations of the variables that are stationary. That implies that
the stochastic trends of the variables are linked over time, moving towards the same long-term
equilibrium.

3.1. Testing for unit roots

Consider the first order autoregressive process, AR(1):

yt = ρyt-1 + et t =...,-1,0,1,2,..., where et is White Noise.                                     (1)

The process is considered stationary, if I ρ < 1, thus testing for stationarity is equivalent with
testing for unit roots (
ρ= 1).

(1) is rewritten to obtain

yt = δyt-1 + et , where δ = 1 - ρ                                                           (2)

and thus the test becomes:

H0 : δ = 0 against the alternative H1: δ < 0.



More intriguing information

1. SAEA EDITOR'S REPORT, FEBRUARY 1988
2. The name is absent
3. The name is absent
4. The name is absent
5. The name is absent
6. Running head: CHILDREN'S ATTRIBUTIONS OF BELIEFS
7. The name is absent
8. The Demand for Specialty-Crop Insurance: Adverse Selection and Moral Hazard
9. Does Competition Increase Economic Efficiency in Swedish County Councils?
10. CAN CREDIT DEFAULT SWAPS PREDICT FINANCIAL CRISES? EMPIRICAL STUDY ON EMERGING MARKETS
11. A Multimodal Framework for Computer Mediated Learning: The Reshaping of Curriculum Knowledge and Learning
12. The name is absent
13. The name is absent
14. The name is absent
15. Connectionism, Analogicity and Mental Content
16. Can a Robot Hear Music? Can a Robot Dance? Can a Robot Tell What it Knows or Intends to Do? Can it Feel Pride or Shame in Company?
17. Experience, Innovation and Productivity - Empirical Evidence from Italy's Slowdown
18. The name is absent
19. Tariff Escalation and Invasive Species Risk
20. The name is absent