Financial Innovation

Table 5 Restricted cointegration rank tests for trace and maximum eigenvalues.

From: Triggering economic growth to ensure financial stability: case study of Northern Cyprus

Null hypothesis	Trace				Maximum eigenvalue
Null hypothesis	Trace statistic	Critical value (5%)	Probability	Null hypothesis	Max Eigen statistics	Critical value (5%)	Probability
r ≤ 0∗	645.9473	197.3709	0.0001	r ≤ 0∗	189.1808	58.43354	0.0000
r ≤ 1∗	456.7665	159.5297	0.0000	r ≤ 1∗	164.1914	52.36261	0.0000
r ≤ 2∗	292.5751	125.6154	0.0000	r ≤ 2∗	119.4457	46.23142	0.0000
r ≤ 3∗	173.1293	95.75366	0.0000	r ≤ 3∗	74.07989	40.07757	0.0000
r ≤ 4∗	99.04942	69.81889	0.0001	r ≤ 4∗	39.31506	33.87687	0.0102
r ≤ 5∗	59.73437	47.85613	0.0026	r ≤ 5	27.41306	27.58434	0.0526
r ≤ 6∗	32.32131	29.79707	0.0251	r ≤ 6	17.43864	21.13162	0.1523
r ≤ 7	14.88266	15.49471	0.0617	r ≤ 7∗	14.76178	14.26460	0.0417
r ≤ 8	0.120880	3.841466	0.7281	r ≤ 8	0.120880	3.841466	0.7281

*Trace statistics indicate 7, and maximum eigenvalues indicate 5 cointegrating equation(s) at the 0.05 level. *Denotes rejection of the hypothesis at the 0.05 level

Back to article page