Cointegrating equation: $\ln y_t={\beta }_0+{\beta }_1\ln k_t+{\beta }_2\ln h_t+{\beta }_{3}t+\ln {ϵ}_t^P$ (Equation (33))

Null hypothesis

Model implication

LR test statistic

Critical value

Conclusion

(1) ${\beta }_1+{\beta }_2=1$

$\alpha +\beta =1$

32.0027

${\chi }_{0.05}^2\left(1\right)=3.84$

Reject the null

(2) ${\beta }_3=0$

$x=0$

39.5572

${\chi }_{0.05}^2\left(1\right)=3.84$

Reject the null

(3) ${\beta }_1+{\beta }_2=1$ and ${\beta }_3=0$

$\alpha +\beta =1$ and $x=0$

39.5771

${\chi }_{0.05}^2\left(2\right)=5.99$

Reject the null