Relationship between consumption of cigarettes and alcohol in the Czech Republic
|Autor:||c. Vojtěch Kania|
|Rok:||2018 - letní|
|Vedoucí:|| PhDr. Jana Votápková Ph.D.
|Typ práce:|| Bakalářská
|Abstrakt:||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.