Macroeconomics With Time Series Econometrics

(Global food prices, the average price of food commodities across countries, play

an important role worldwide, strongly influencing food affordability and diet.

They also affect the incomes of farmers and producers, particularly in lowincome countries where a large fraction of the population is employed in the

agricultural sector.

You are asked to investigate the relationship between the global price of corn

and the global price of soybeans, two major agricultural commodities. Their

price is quoted in US dollars per Metric Ton. The file commodity.xls contains

the dataset1 which is quarterly and runs from 1990Q1 to 2021Q3.)

Task:

RSTUDO

Are the two variables cointegrated?

Informal check: Data plot, residual plot

Explain the Data Correlation using the code and formulas relevant with Engle Granger Test