Relationship between consumption of cigarettes and alcohol in the Czech Republic
| Author: | c. Vojtěch Kania |
|---|---|
| Year: | 2018 - summer |
| Leaders: | PhDr. Jana Votápková Ph.D. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 65 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/191096/ |
| Abstract: | This thesis investigates the relationship between the consumption of cigarettes and pure alcohol in the Czech Republic during 1955-2016. It tests for a unit root in both series using ADF test and KPSS test. Next, Engle-Granger procedure and Johansen trace test are used to test for a cointegration relation between the two time-series. Both the ADF and the KPSS test found a presence of a unit root when controlled for a shift in a mean in 1989. However, Engle-Granger procedure did not find enough evidence for a cointegration relation, which was confirmed by Johansen trace test. The same results were obtained when only a subsample 1955-1989 was considered. |
