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A Dynamic Computable General Equilibrium (CGE) Model of the New Zealand Economy - WP 02/07

Appendix 4 Demand for housing services

Log(PCONH/(PYD*(1+POL4))= C0200+C0201*TREND+C0202*Log(CONH/CONO)

Table A4.1 Estimation of the long-run demand for housing consumption
Sample period 87:2-01:4 91:1-01:4
log(CONH/CONO) -0.189
(0.1626)		 -1.590
(0.2248)
TREND 0.017
(0.0031)		 -0.022
(0.0060)
Constant -0.542
(0.1689)		 -1.903
(0.2211)
Cointegration tests    
Dickey-Fuller **  
Augmented Dickey-Fuller **  
Table A4.2  Unit root tests (Levels)
  Lag length p ADF test  statistic
log(PCONH/(PYD*(1+POL4)) 4 -0.811
log(CONH/CONO 2 -1.940
Table A4.3  Unit root tests (First Differences)
  Lag length p ADF test statistic
log(PCONH/(PYD*(1+POL4)) 4 -2.95**
log(CONH/CONO 0 -7.806*

* significantly different from 0 at 1% level.

** significantly different from 0 at 5% level.

The critical values are based on MacKinnon critical values for unit root tests.

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