Table 2.

Augmented Dickey–Fuller and Phillip–Perron unit root test

VariablesDeterministic termsAugmented
Dicky–Fuller
Phillips–PerronOrder of integration
LevelsInterceptZ(t)Z(t) 
Mortgage rateIntercept−1.66(0.45)−1.61(0.47)I(1)
CPIIntercept−2.91 (0.03)**−3.06 (0.03)**I(0)
LogBPPIntercept−1.48(0.54)−1.46(0.55)I(1)
logDYPKIntercept and trend−2.83(0.19)−1.62(0.78)I(1)
logBPPIntercept−2.22(0.48)−2.53(0.31)I(1)
LogECIntercept−0.97(0.76)−0.90(0.79)I(1)
LogHouse pricesIntercept−0.87(0.80)−2.21(0.20)I(1)
First difference    
ΔMortgage rateIntercept−4.97(0.00)***−6.45(0.00)***I(0)
ΔLog BPPIntercept−5.44(0.00)***−13.36(0.00)***I(0)
ΔLogDYPKIntercept−5.04(0.00)***−13.64(0.00)***I(0)
ΔLogBPPIntercept−5.44(0.00)***−13.40(0.00)***I(0)
ΔLogECIntercept−5.54(0.00)***−10.04(0.00)***I(0)
ΔLogHouse priceIntercept−5.58(0.00)***−7.82(0.00)***I(0)

Note: All unit root are testing using three lags

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