Kleanthis Natsiopoulos
;
Nickolaos G. Tzeremes

ardl bounds test for cointegration: replicating the pesaran et al. (2001) results for the uk earnings equation using r (replication data)

This paper replicates the UK earnings equation using the autoregressive distributed lag (ARDL) modeling approach and the bounds test for cointegration by Pesaran et al. (Journal of Applied Econometrics, 2001, 16(3), 289–326). The findings from the narrow sense fully replicate the original results using the open-source language R and the ARDL package. In the wide sense replication, augmented data are employed, thus extending the end period from 1997:Q4 to 2019:Q4, using an alternative measure for union power. Adopting the new dataset, this study reinvestigates the UK earnings equation, thereby providing supporting evidence of a long-run relationship and reveals empirical findings about the long-run effects of productivity, unemployment, tax wedge, and union power on wages.

Data and Resources

Suggested Citation

Natsiopoulos, Kleanthis; Tzeremes, Nickolaos G. (2022): ARDL bounds test for cointegration: Replicating the Pesaran et al. (2001) results for the UK earnings equation using R (replication data). Version: 1. Journal of Applied Econometrics. Dataset. http://dx.doi.org/10.15456/jae.2022327.072431