using PCgive to do Econometrics work 48hous

Testing the PPP for the Pound Sterling / US dollarWrite a two page paper, excluding charts and regression results, assessing the empirical support for PPP for the US Dollar – British pound: 1791-2015

Formulate a model that allows testing whether PPP holds

Estimate the parameters of that model using the files in the Data for Pound Sterling and PPP

Report

the test result for PPP the fit of the model

the assumed parameter constancy

the sensitivity to whether the variables are expressed in logs or  not

you should have pcgive software, if you dont i have to send you, is a 300mb file

pcgive 700
data BoE_PPP.bn7
>Dollar_Pound 1791 1 2015 1 1 32 BoE_PPP 09-01-2017 14:04:04
>US_CPI 1791 1 2015 1 1 1864 BoE_PPP 09-01-2017 14:04:04
>UK_CPI 1791 1 2015 1 1 3696 BoE_PPP 09-01-2017 14:04:04

BoE_PPP.bn7

BoE_PPP.in7
pcgive 701
data BoE_PPP.bn7
>Dollar_Pound 1791 1 2015 1 1 32 OxMetrics9 09-01-2025 08:37:27
>US_CPI 1791 1 2015 1 1 1864 OxMetrics9 09-01-2025 08:37:27
>UK_CPI 1791 1 2015 1 1 3696 OxMetrics9 09-01-2025 08:37:27