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Table 5 Unit root, ADF test

From: Interest rate pass-through in the Dominican Republic

  Levels First differences
No intercept, no trend Intercept, no trend Intercept, trend No intercept, no trend Intercept, no trend Intercept, trend
Monetary policy rate −1.490 −2.266 −2.399 −8.510*** −8.534*** −8.543***
Three-month deposit rate −1.285 −2.910* −2.999 −7.112*** −7.104*** −7.074***
Six-month deposit rate −1.203 −3.212** −3.328* −5.567*** −5.558*** −5.541***
One-year deposit rate −1.331 −3.114** −3.275* −6.546*** −6.540*** −6.526***
Weighted average deposit rate −1.355 −3.537** −3.696** −5.214*** −5.207*** −5.192***
Three-month lending rate −1.056 −2.516 −2.712 −11.970*** −11.938*** −11.907***
Six-month lending rate −1.079 −2.242 −2.466 −15.009*** −14.971*** −14.907***
One-year lending rate −1.119 −2.442 −2.579 −12.273*** −12.238*** −12.170***
Weighted average lending rate −0.990 −2.314 −2.494 −7.407*** −7.398*** −7.360***
Commercial lending rate −0.968 −2.231 −2.369 −7.576*** −7.561*** −7.531***
Personal consumption lending rate −0.833 −2.468 −2.560 −7.804*** −7.792*** −7.746***
Mortgage lending rate −1.175 −2.286 −2.790 −6.050*** −6.063*** −6.014***
Five-year government domestic bond −1.962** −3.113** −3.414* −12.655*** −13.009*** −12.787***
Seven-year government domestic bond −2.002** −2.182 −2.577 −6.808*** −7.053*** −6.966***
Ten-year government domestic bond −1.458 −0.806 −2.000 −7.556*** −7.696*** −7.643***
Ten-year government external bond −1.416 −1.559 −2.024 −6.451*** −6.534*** −6.497***
  1. The null hypothesis is that the series has a unit root. The lagged differences are included in the specifications to obtain white noise residuals The Schwarz information criterion is used to select the optimal lag length
  2. ***, **, * Next to a number indicate statistical significance at 1, 5 and 10 percent, respectively Source: Authors’ calculations