The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration

There are simple well-known conditions for the validity of regression and correlation as statistical tools. We analyse by examples the effect of nonstationarity on inference using these methods and compare them to model based inference using the cointegrated vector autoregressive model. Finally we a...

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Main Author: Søren Johansen
Format: Article
Language:English
Published: VIZJA University 2012-06-01
Series:Contemporary Economics
Online Access:http://ce.vizja.pl/en/download-pdf/id/239
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author Søren Johansen
author_facet Søren Johansen
author_sort Søren Johansen
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description There are simple well-known conditions for the validity of regression and correlation as statistical tools. We analyse by examples the effect of nonstationarity on inference using these methods and compare them to model based inference using the cointegrated vector autoregressive model. Finally we analyse some monthly data from US on interest rates as an illustration of the methods.
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spelling doaj-art-46eadf4e4e93412ba95b25018962208a2025-08-20T02:39:19ZengVIZJA UniversityContemporary Economics2084-08452012-06-016219010.5709/ce.1897-9254.39The Analysis of Nonstationary Time Series Using Regression, Correlation and CointegrationSøren JohansenThere are simple well-known conditions for the validity of regression and correlation as statistical tools. We analyse by examples the effect of nonstationarity on inference using these methods and compare them to model based inference using the cointegrated vector autoregressive model. Finally we analyse some monthly data from US on interest rates as an illustration of the methods.http://ce.vizja.pl/en/download-pdf/id/239
spellingShingle Søren Johansen
The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration
Contemporary Economics
title The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration
title_full The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration
title_fullStr The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration
title_full_unstemmed The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration
title_short The Analysis of Nonstationary Time Series Using Regression, Correlation and Cointegration
title_sort analysis of nonstationary time series using regression correlation and cointegration
url http://ce.vizja.pl/en/download-pdf/id/239
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AT sørenjohansen analysisofnonstationarytimeseriesusingregressioncorrelationandcointegration