HousingPriceandEconomicGrowthinChina.docxVIP

Housing Price and Economic Growth in Shenzhen: Long-Run Relation and threshold effects Cointegration Analysis To estimate our model properly, we need stationary data, taking a look at the following graph shows us a non-stationary time series having a trend already. Figure 1 A first step in cointegration analysis is to study the stationarity of the series by using unit root tests, such as the ADF and the KPSS tests. Table 1 and 2 show unit root tests for the variables in levels and in differences, the variables are expressed in logarithmic form. Table 1 ADF and KPSS unit root tests variable